GOVERNMENT has allowed four more mining firms to import capital equipment duty-free as it seeks to improve one of the sectors that economic analysts say is key to the resuscitation of the country’s moribund economy.
According to Statutory Instrument 131 and 132 of 2015, published in December, the Zimbabwe Revenue Authority (ZIMRA) would allow the four mining firms to import capital equipment without paying import duty for three years.
The four mining firms are Scrap Crushers Private Limited, Goldmore Mining Investment Private Limited, Mvelamanje Enterprises Private Limited and Much Incorporated Private Limited.
The four firms’ tax holiday runs from around September and October 2015 to around the same time in 2018.
The companies were granted the three-year customs duty suspensions in terms of section 9K of the Customs and Excise (Suspension) Regulations, a section dating back to the beginning of 2011. The suspensions are tightly controlled by the secretary for Mines and Mining Development and ZIMRA, and they apply only to goods of a capital nature to be used in mining development operations, including sinking of shafts, installation of equipment and machinery, and erection of facilities for treating and storing of minerals.
The four join several others that have been granted the privilege in the past five years.
Government is trying to promote investment in the mining sector, which global investment analysts say has a real potential for growth.
In its forecast for the five years to 2020, United Kingdom-based investment research think-tank, BMI Research, identified the Zimbabwean mining sector as one of the country’s potential areas for real growth as the resource-rich, but pitifully poor, Southern African nation is endowed with vast mineral reserves that would continue to attract global capital even in the face of the other investment risks.
In December last year, government also waived corporate tax on Salini Impreglio, the Italian firm currently involved in the construction of the Tokwe-Murkosi dam in Masvingo. The waiver also extended to employment tax on the firm’s expatriate staff.
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