By Amina Faki
Tanzanian Finance Minister, Dr. Philip Mpango announced a new mining tax on Thursday as he presented the 2017/2018 national budget in Parliament.
The new mining tax in Tanzania has introduced a clearing fee of one percent of the mineral value that is supposed to be paid in the clearing houses before being exported.
The minister added that the government will not allow direct exportation of minerals from the mines to other countries and would instead establish clearing houses.
The clearing houses will be established at international airports, mining areas and other areas where minerals will be verified and issued export permits.
The move comes after a special committee formed by the President reported that mineral ores destined for export were being undervalued.
The business daily wrote that the report showed that an average of 1,400 grams of gold per ton of mineral sands in containers, yet the Tanzania Minerals Audit Agency (TMAA) indicated an average of only 200 grams.
This only means that the minerals in Tanzania are under-valued. And the introduction of the new mineral tax will help reduce the gap.
The committee also reported disparities in copper and silver ratios, while no royalty was paid for other compounds like iron, sulphur, rhodium, iridium, and lithium despite there being smelted from the concentrates.