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 |



Tanzanian president splits energy and mining in ministry shake-up

  1. DAR ES SALAAM, Oct 7 (Reuters) - Tanzanian president John Magufuli split the energy and minerals ministry in two and appointed heads for the new ministries on Saturday, five months after sacking the p…
  2. {read by 57 people}


Tanzania: One Killed, Another Cheats Death Following Mine Accident in Geita

  1. Geita - A small-scale miner has been killed after he was trapped in a collapsed mine at Lwamgasa Village in Geita Rural District on Tuesday. The body of the victim was found Thursday following resc…
  2. {read by 43 people}


Tanzania to auction tanzanite from its source to curb smuggling

  1. Tanzania is expected to auction tanzanite in the mining site of Mererani on Saturday in efforts to sell the gemstones on its source to make the east African nation benefit from its natural resources. …
  2. {read by 56 people}


Two die in attack to Avocet Mining's convoy in Burkina Faso

  1. West Africa-focused Avocet Mining said Wednesday that two paramilitary police officers were killed and other two suffer injuries after unknown aggressors assaulted a convoy carrying fuel to its Inata …
  2. {read by 68 people}


Congo reinstates VAT on imports for mining companies

  1. 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…
  2. {read by 77 people}


Ghana's gold, diamond output to drop as govt curbs small-scale mining

  1. PANAJI, India, Aug 12 (Reuters) - Ghana's gold output is likely to drop sharply in 2017 because of curbs on the small-scale mining that lifted production last year but was causing damage to the enviro…
  2. {read by 146 people}



khjg