Govt suspends tax on platinum

Government has suspended export tax on unbeneficiated platinum following “concrete evidence” that platinum producers are working on building a refinery locally.

Yesterday, Mines and Mining Development Minister Walter Chidhakwa said, “Platinum miners submitted a request for deferment of tax, which I took to Cabinet; the request was accepted and we have given them up to July 2016.

“This follows the submission of a detailed Memorandum of Understanding on value- addition and beneficiation, leading to the setting up of a refinery by July 2016.”

Government has been trying – with little success – to nudge platinum miners to value-add prior to exporting and introduced a tax on unbeneficiated exports.

Producers argue this tax will impede expansion projects on the back of depressed global platinum prices.

Zimbabwe, with the world’s second largest reserve, has three major platinum firms – Zimplats, Mimosa Mining Company and Unki Mines.

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