Congo reinstates VAT on imports for mining companies

Source: REUTERS

KINSHASA, Aug 12 (Reuters) - Congo has reinstated a value added tax on mining company imports, the chamber of mines said on Saturday, part of what miners say is a deteriorating business climate in the country.

Democratic Republic of Congo’s government agreed to suspend the tax in July 2016 to help companies during a commodity price downturn, and to pay down hundreds of millions of dollars in VAT reimbursements owed to the companies.

 

Major mining companies in Congo include Glencore, Randgold Resources and China Molybdenum.

 

Now the government is desperate to increase tax revenue in the face of severe economic problems and stubbornly low commodity prices. The franc has lost over 30 percent of its value in the past year and the central bank has about three weeks’ left of import cover.

Economic problems have been exacerbated by deep unrest across the country caused by President Joseph Kabila’s failure to arrange elections in time for when his mandate expired in December.

The decree suspending VAT was valid for one year, John Nkono, secretary general of the industry-led Chamber of Mines, told Reuters. The chamber had informed the government of the expiration date in July but has not heard back.

He added that the government owes mining companies about $700 million on VAT reimbursement going back several years.

In a draft letter to Finance Minister Henri Yav seen by Reuters, the president of Congo’s Chamber of Commerce, Albert Yuma, said reinstating the VAT tax would “make the functioning of mining companies more difficult”.

He added that companies “need the help of the Government of the Democratic Republic of Congo during this constraining period.”

Yav could not be immediately reached for comment. The finance ministry was not available. (Reporting By Aaron Ross, additional reporting by Patient Ligodi; Editing by Edward McAllister and David Evans)

| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 |



7th Annual Canada-Tanzania Forum on Corporate Social Responsibility(CSR)

  1. Mr Aman Mhinda (Hakimadini executive director) attending the Corporate Social Responsibility (CSR) Forum that started Thursday 01/Feb/2018 at Coral Beach Hotel, Dar es Salaam-Tanzania. The High Co…
  2. {read by 101 people}


New land law on the cards

  1. They endorsed the Written Laws (Miscellaneous Amendments) No. 5 bill of 2017, Attorney General George Masaju had tabled earlier, aimed at, among other objectives, to make amendments in the land law of…
  2. {read by 52 people}


Sierra Leone 'Peace Diamond' sold for less-than-expected

  1. Sierra Leone has sold one of the world's largest diamonds ever found at an auction in New York on Monday, fetching a lower-than-expected price of $6.5 million The egg-sized, 709-carat rough "Peace …
  2. {read by 86 people}


Chinese 'investor' moves to evict 10,000 artisanal miners

  1. The space for artisanal miners in Uganda is slowly shrinking. As the country tries to strike a deal between artisanal miners and a developer of a gold mine in Mubende, a similar problem is playing out…
  2. {read by 93 people}


Mining ministry hosts sector stakeholders

  1. The Ministry of Mining will hold the second edition of the annual Kenya Mining Forum in Nairobi that is expected to be opened by President Uhuru Kenyatta. The two-day event will showcase Kenya's mi…
  2. {read by 92 people}


Mining industry must spread social and environmental progress to small-scale mines

  1. Artisanal and small-scale mines, normally operating in the informal economy, produce a big chunk of the minerals we use every day -- about a fifth of the world's gold produced each year, for example. …
  2. {read by 191 people}



khjg