Tanzania querried over $32m mining revenue

Invisible · 2011-04-11T11:21:17+00:00

Monday, 11 April 2011 By Martha Malitinyu An international NGO has unveiled discrepancies of over US$32m between what the mining companies are paying in form of taxes and royalties and the actual amount the Tanzania Government received. The Tanzania Extractive Industries Transparency Initiative (TEITI) investigated 12 major mining companies' payments to the Government agencies between July 2008 and July 2009 and discovered that there were differences between what the mining companies paid and what the concerned Government agencies received. The Government agencies that received the underpayments include the Tanzania Revenue Authority, the Ministry of Energy and Mineral and the National Social Security Fund. The findings were recently released at the World Bank Country Office in Dar es Salaam. According to TEITI the 12 mining and gas companies paid a total of Tsh174.9 (US$121.4m) against Tsh128.4b ($89.1m) that the Government agencies received. This is a discrepancy of up to Tsh46.5b ($32.2m) in a period of a year. The mining companies that were investigated include Resolute Tanzania Limited, Geita God Mine, North Mara Gold Mine, Buzwagi Gold Mine, Bulyanhaulu Gold Mine, Tulawaka Gold Mine and TanzaniteOne Mining Limited. Others are the Williamson Diamonds Limited, El-Hillal Minerals Limited, Pan African, Artumas and Tanzania Petroleum Development Corporation. Extracting companies, according to experts, contributed 1.5% of the Government tax revenue during the period mentioned. There is no doubt that TEITI's report clearly shows that there is something definitely wrong between the mining companies and the government agencies as far as taxes and royalties payments are concerned. Tanzanians have been complaining that the mining companies, mostly owned by foreign firms, don't benefit the country but the foreign owners. TEITI is part of the Extractive Industries Transparency Initiative (EITI), a global standard for transparency and accountability in the oil, gas and mining sectors. The EITI process helps civil society groups, media and the public at large to systematically review and assess what is being paid by the mining companies to and received by Government agencies in taxes and royalties. Tanzanian is one of the countries rich in natural resources especially minerals, such as gold ranked third in Africa after South Africa and Ghana, but it remains poor probably due to poor management of resources and lack of transparency and accountability in some areas such as payment of taxes and royalties as revealed by the EITI. Todate Tanzania does not have a gems processing factory meaning it earns less than its potential. Source: Business Week

Thread starter Invisible
Start date Apr 11, 2011

Invisible

JamiiForums uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.

Accept Learn more…

Back

Top Bottom

Forums

New posts

Tanzania querried over $32m mining revenue

Invisible

JF Admin

Our Community

Regional Communities