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 | 24 | 25 | 26 |



We Will support Ghana To fight Galamsey -- Chinese Ambassador

  1. China has made yet another strong commitment to help the government of Ghana to control the menace of illegal mining properly referred to as galamsey. A number of arable lands have been destroyed b…
  2. {read by 675 people}


Wall around tanzanite mines has started paying off

  1. Tanzania has recorded increased revenues from sales of tanzanite, which authorities attribute to the 24km perimeter wall surrounding the mines in Mirerani in the northern Manyara Region, constructed i…
  2. {read by 655 people}


Tarime suspends small scale mining in Kibaga

  1. According to the Tarime District Commissioner, Glorious Luoga, the mine will remain closed for unspecified period pending an ongoing investigations under the district safety and security committee fin…
  2. {read by 695 people}


Congo miners buying cobalt from artisanal operators to balance market

  1. Despite calls for increased transparency along the cobalt supply chain to avoid alleged human rights violations in the Democratic Republic of Congo, the activity continues to escalate, with as many as…
  2. {read by 874 people}


NBC managers pledge to graduate artisanal miners into mining companies

  1. NBC's Head of Small and Medium size Enterprises (SMEs) Evance Luhimbo said in Geita town where an inaugural Mining Technology Exhibition is underway this week that the Dar es Salaam based bank is read…
  2. {read by 938 people}


Inter-Ministerial Committee On Illegal Mining To Vet Registered Artisanal & Small-scale Miners

  1. The Inter-Ministerial Committee on Illegal Mining is set to vet all registered artisanal and small-scale miners across the country in a bid to regularise their future activities before it makes recomm…
  2. {read by 1103 people}



khjg