Monday 23rd October, 2017
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Tanzania orders audit of mining companies' earnings

Tanzania orders audit of mining companies' earnings

Tanzania’s President John Magufuli has ordered a special audit of mining companies to determine if they pay their fair share of tax­es to the East African country.

Mining contributes 3.5 percent of the gross domes­tic product (GDP) in Tanza­nia, Africa’s fourth-largest gold producer, but the government wants the sector to pay more taxes.

The order for an audit fol­lows an abrupt ban on ex­ports of gold and copper con­centrates.

“The government wants to verify if the relevant taxes are actually being paid,” Tanzani­an Prime Minister Kassim Ma­jaliwa said in a statement late on Tuesday.

Since coming to power in November 2015, Magufuli has promised to root out tax eva­sion, corruption and misman­agement, but some foreign in­vestors have been rattled by his policies.

Tanzania’s biggest mining firm, Acacia Mining, is in talks with the government after be­ing hit hard by the ban on ex­ports, with the miner saying it is incurring a daily loss of $1 million due to the stoppage.

Magufuli has also ordered hundreds of export-bound shipping containers of miner­al concentrate to be placed un­der 24-hour police watch un­til a thorough inspection was done to verify if the cargo was properly declared.

A video recording of the president making an unan­nounced visit to the Dar es Salaam port on March 23 to personally inspect containers of mineral concentrate showed a vividly angry Magufuli talk­ing to port workers.

The president said he has in­structed officials to impound over 250 shipping containers of gold and copper concen­trate owned by Acacia Min­ing at Dar es Salaam pending a tax probe.

 

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