Mining tax incentive could help lift industry out of doldrums
Government is investigating introduction of tax measures in key sectors, but an OECD report shows incentives do not attract mining investment into developing countries
In his medium-term budget policy statement in October, finance minister Tito Mboweni laid out plans to revive the mining industry, where output fell 1.7% in the first eight months of 2018, in contrast to a rise of 4.5% over the matching period in 2017. His plans included a focus on reforms and policy certainty. While no major tax changes were announced, trade and industry minister Rob Davies said in November that the government was investigating the introduction of tax incentives in key industries to kick-start the economy. He mentioned mining as one sector the government planned to target. Would a mining tax incentive help improve the sector’s contribution to the economy, and assist in dragging it out of recession? A 2018 report titled "Tax incentives in mining: minimising risks to revenue", published by the International Institute for Sustainable Development and the Organisation for Economic Co-operation and Development (OECD), suggests there is no clear and definitive answer. Aut...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.