Windfall Tax on Profits of mining firms unlikely to take effect this year
Posted on: 06-Sep-2012
It appears the 10 percent tax on the windfall profits of mining firms may not take this year.
This is one of the new taxes government intended to introduce this year to maximize the country’s benefits from the mining sector.
The bill is currently before parliament and JOY-BUSINESS has learnt that government plans to lay it for approval next year.
The Chamber of Mines has welcomed the development and the Chief Executive, Dr. Toni Aubynn however adds mining firms still need some clarity on the tax.
“If you say windfall profits, it means the company is making profits far beyond normal. There needs to be a certain threshold to this but this clarity is not found in the proposed bill. Besides, I am not convinced the companies are making windfall profits and so as it is now, company’s making losses might even be required to pay the tax which would not be fair” he said.
Government has already introduced a 10 percent increase in corporate tax for mining firms from 25 to 35 percent.