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Home » Mines ministry seeks to balance taxation, growth

Mines ministry seeks to balance taxation, growth

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THE Ministry of Mines is seeking to achieve a delicate balance between maintaining viable taxation for miners and promoting value addition and beneficiation in the sector, with a focus on 2025 and beyond.

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This comes as platinum group metals (PGMs), a significant contributor to the country’s mineral export revenues, face a major crisis due to slumping global prices.
Permanent secretary at the ministry, Pfungwa Kunaka, told The Financial Gazette that a two-pronged approach has been proposed to the Treasury, balancing current performance with future aspirations.

Pfungwa Kunaka

“The first part is looking at performance this current year. We have said to the Treasury, let’s ensure that the taxation remains viable for the miners but looking forward…give them a chance,” Kunaka said.
Regarding 2025, Kunaka emphasised the focus on value addition and beneficiation, stating, “I think what we are looking at more in terms of 2025, is value addition and beneficiation. The issue of the Responsible Mining Audit Initiative is also something that will contribute to the better performance of our mining sector.”
Despite significant challenges, the mining sector has performed well in the first half of the year, according to Kunaka. However, large-scale miners are threatening reduced output unless they receive relief in the form of lower taxation and electricity tariffs.
In a positive development, capacity utilisation in the mining industry is expected to reach 90 percent this year, compared to 84 percent in 2023. This is expected to boost the economy and help prevent job losses.

newsdesk@fingaz.co.zw

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