Despite extensive research into the possibility, South Africa will not follow Australia in implementing a mining super tax, Mineral Resources Minister Susan Shabangu says.
Shabangu says she believed South Africa’s current tax dispensation was competitive when benchmarked against other countries, but added that there was always room for improvement.
Commenting on Australia’s decision last year to implement a mining super tax, she said South Africa should forge its own solution to taxing the sector, adding that the country needed a tax regime that would help the sector to become competitive and help it to grow.
She said her department had been engaging with National Treasury to ensure that any new additions or changes to mining taxes were not excessive.
Shabangu reiterated that the department had no intention of creating a special dispensation for African Exploration Mining and Finance Corporation, after Cabinet in March approved a proposal to hive off the entity from the Central Energy Fund. The African Exploration Mining and Finance Corporation would have to compete without being rescued by the government or receiving “favours” from the state.
South Africa’s mining sector contributes 9.6% to South Africa’s gross domestic product and employed 500 000 people. – BuaNews