By Alois Vinga
FINANCE Minister Mthuli Ncube Friday floated lucrative incentives for investors in the mining sector in a bid to boost output in the country’s major economic earner.
Through various programmes taken to refocus the mining sector, Zimbabwe foresees a US$12 billion being injected into the economy by year 2023 in a development that will bolster economic growth and downstream value addition.
Speaking to delegates attending the Zimbabwe Annual Mining Conference 2021 in Victoria Falls, Ncube expressed optimism on achieving the targets through offering lucrative incentives to investors.
Under the new measures, all capital expenditure on exploration, development and operations incurred wholly and exclusively for any mining operation is allowed in full under special deductions.
The new measures also include expenditures incurred on prospecting and exploratory works undertaken for the purpose of acquiring rights to mine minerals.
“In the case of a holder of a special mining lease, corporate income is taxed at a special rate of 15%. A holder of a special mining lease may be exempt wholly or partly from non-residents tax on fees, remittances and royalties,” said Ncube.
“Rebate of duty will be granted on goods for the prospecting and search for mineral deposits for use in petroleum exploration or production, and on goods imported in terms of an agreement entered into pursuant to a special mining lease,” he said.
Ncube also announced the suspension of duty on goods imported for specific mine development operations.
He also announced the incremental export incentive scheme under which beneficiaries will be allowed to retain 80% of their foreign currency while exporters licensed under the Special Economic Zones (SEZs) and those listed on the Victoria Falls Stock Exchange will be allowed to retain 100% of their foreign currency earnings.
The Treasury boss said government was currently improving energy infrastructure through revamping of old power plants and construction of new plants to ensure a reliable supply of electricity.
“I am confident that these measures will contribute towards the attainment of the US$12 billion mining sector,” added Ncube.