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1/ I am here to share my views on an MP @DrTapiwa's statement below in the screenshots. @MinistryMines @Mining_Zimbabwe @kudzie_sharara @isaackwesu
@TMukupe & Eddie Cross didn’t challenge him during the programme.
https://www.facebook.com/watch/live/?v=696593514287247&ref=watch_permalink
1/ I am here to share my views on an MP @DrTapiwa's statement below in the screenshots. @MinistryMines @Mining_Zimbabwe @kudzie_sharara @isaackwesu
@TMukupe & Eddie Cross didn’t challenge him during the programme.
https://www.facebook.com/watch/live/?v=696593514287247&ref=watch_permalink
2/
He said that "Our corporate tax is very low." Zimbabwe's corporate tax is 25%.
Is it true that its very low? False
He said that "Our corporate tax is very low." Zimbabwe's corporate tax is 25%.
Is it true that its very low? False
3/
Mining companies in Zimbabwe are actually overtaxed taxed as follows:
1) Mineral royalties,
2) Corporate Tax,
3) Additional Profit Tax
4) Withholding Taxes
He needs to read this study, https://static.pmg.org.za/131106mining.pdf
Mining companies in Zimbabwe are actually overtaxed taxed as follows:
1) Mineral royalties, 2) Corporate Tax, 3) Additional Profit Tax 4) Withholding TaxesHe needs to read this study, https://static.pmg.org.za/131106mining.pdf
4/
After making a false statement about the level of corporate taxes, he then called for an increase of corporate tax. "We should actually increase taxes on corporates especially on the mining houses."
Read this, https://treasury.gov.au/speech/tax-reform-and-the-economic-backdrop
After making a false statement about the level of corporate taxes, he then called for an increase of corporate tax. "We should actually increase taxes on corporates especially on the mining houses."
Read this, https://treasury.gov.au/speech/tax-reform-and-the-economic-backdrop
5/
This is the direct impact of tax on investment in Ghana
This is the direct impact of tax on investment in Ghana
6/
He said, "The mining sector in this country is getting away with murder. They are reaping huge profits from our natural resources."
This is not only very hostile to business but its crap!
He needs to read this, https://www.icaz.org.zw/imisDocs/State%20of%20the%20mining%20industry%202018%20report%20prospects%20for%202018.pdf
He said, "The mining sector in this country is getting away with murder. They are reaping huge profits from our natural resources."
This is not only very hostile to business but its crap!
He needs to read this, https://www.icaz.org.zw/imisDocs/State%20of%20the%20mining%20industry%202018%20report%20prospects%20for%202018.pdf
7/
He also needs to avoid being lazy & should read this,
http://www.zeparu.co.zw/sites/default/files/2019-11/mining%20revenue.pdf @ZEPARU1
He also needs to avoid being lazy & should read this,
http://www.zeparu.co.zw/sites/default/files/2019-11/mining%20revenue.pdf @ZEPARU1
8/
"A royalty is a usage based tax calculated as a % of the gross fair market value of minerals produced & not quantity." http://www.mines.gov.zw/?q=mining-taxation-zimbabwe
"A royalty is a usage based tax calculated as a % of the gross fair market value of minerals produced & not quantity." http://www.mines.gov.zw/?q=mining-taxation-zimbabwe
9/
"Royalties are levied in terms of section 244 of the Mines&Minerals Act, whilst the royalty rates are fixed through the Finance Act. The Mines&Minerals Act provides for a full rebate of royalty in respect of all minerals or mineral-bearing products used wholly within ZW
."
"Royalties are levied in terms of section 244 of the Mines&Minerals Act, whilst the royalty rates are fixed through the Finance Act. The Mines&Minerals Act provides for a full rebate of royalty in respect of all minerals or mineral-bearing products used wholly within ZW
."
10/
"Its a very strong sector dominated by multinationals and these are rich. They can contribute more to revenues..."
This is call to squeeze mining companies, another hostile & anti-market statement towards FDI. This is from a legislator.
"Its a very strong sector dominated by multinationals and these are rich. They can contribute more to revenues..."
This is call to squeeze mining companies, another hostile & anti-market statement towards FDI. This is from a legislator.
11/
He said, "Manufacturing has collapsed so we may as well discount it as its not gonna contribute a lot to our revenues. But my case is on mining."
He is saying because manufacturing is collapsing, let the mining sector be squeezed more.
He said, "Manufacturing has collapsed so we may as well discount it as its not gonna contribute a lot to our revenues. But my case is on mining."
He is saying because manufacturing is collapsing, let the mining sector be squeezed more.
12/
"Lets be innovative. Review the royalties up. Review the company taxes for the mining houses. Review the export taxes up so that we can benefit (more) from our natural resources."
Imagine he is claiming to be innovative by increases taxes!
"Lets be innovative. Review the royalties up. Review the company taxes for the mining houses. Review the export taxes up so that we can benefit (more) from our natural resources."
Imagine he is claiming to be innovative by increases taxes!
13/
"In economics, they have got (a term called) natural resource curse. You can be rich but also poor bcoz you are not structuring your taxes to collect as much you can..."
He doesnt know what is a #ResourceCurse in economics.
"In economics, they have got (a term called) natural resource curse. You can be rich but also poor bcoz you are not structuring your taxes to collect as much you can..."
He doesnt know what is a #ResourceCurse in economics.
14/
A resource curse is "when countries with an abundance of natural resources (such as fossil fuels & certain minerals), tend to have less economic growth, less democracy, & worse development outcomes than countries with fewer natural resources."
https://resourcegovernance.org/sites/default/files/nrgi_Resource-Curse.pdf
A resource curse is "when countries with an abundance of natural resources (such as fossil fuels & certain minerals), tend to have less economic growth, less democracy, & worse development outcomes than countries with fewer natural resources."
https://resourcegovernance.org/sites/default/files/nrgi_Resource-Curse.pdf
15/
"Mining houses are getting away with very little contribution to revenues to the state."
He isnt being truthful. He needs to read this, https://miningzimbabwe.com/performance-of-the-zimbabwe-mining-sector-in-2019/
"Mining houses are getting away with very little contribution to revenues to the state."
He isnt being truthful. He needs to read this, https://miningzimbabwe.com/performance-of-the-zimbabwe-mining-sector-in-2019/
16/ Does he know these problems faced by the mining sector?
1) Regular&prolonged power outages,
2) FX retentions,
3) High costs of production due to inflation,
4) Low access to & high costs of finance,
5) Suboptimal fiscal regime,
6) Policy inconsistency&unpredictability.
1) Regular&prolonged power outages,
2) FX retentions,
3) High costs of production due to inflation,
4) Low access to & high costs of finance,
5) Suboptimal fiscal regime,
6) Policy inconsistency&unpredictability.
17/
"The mining sector contributed an average of 6,2% to the gross domestic product (GDP) between 2009 and 2015 and 8,4% from 2016 to 2018."
https://www.devere-zimbabwe.co.zw/news/Government-works-to-improve-mining-sector
"The mining sector contributed an average of 6,2% to the gross domestic product (GDP) between 2009 and 2015 and 8,4% from 2016 to 2018."
https://www.devere-zimbabwe.co.zw/news/Government-works-to-improve-mining-sector
18/
"Lets be innovative. Review the royalties up. Review the company taxes for the mining houses. Review the export taxes up so that we can benefit (more) from our natural resources."
Imagine the legislator is calling for the destruction of the mining sector through taxes.
"Lets be innovative. Review the royalties up. Review the company taxes for the mining houses. Review the export taxes up so that we can benefit (more) from our natural resources."
Imagine the legislator is calling for the destruction of the mining sector through taxes.
19/
When a legislator shows lack of understanding of an area that he chooses to talk about when he is a former labour chief economist, former minister of economic development & founded an economic consultancy firm, one gets worried.
When a legislator shows lack of understanding of an area that he chooses to talk about when he is a former labour chief economist, former minister of economic development & founded an economic consultancy firm, one gets worried.
20/
Poverty "is when doesn't have enough material possessions or income for a person's needs."
An increase in taxes doesnt solve a problem of poverty. Laughable!
Poverty is reduced or ended when there is private sector investment, growth & employment.
Poverty "is when doesn't have enough material possessions or income for a person's needs."
An increase in taxes doesnt solve a problem of poverty. Laughable!
Poverty is reduced or ended when there is private sector investment, growth & employment.
21/
"China’s real great leap forward occurred because it allowed private businesses to grow!"
"China’s real great leap forward occurred because it allowed private businesses to grow!"
22/
What has capitalism ever done for us?
https://capx.co/what-has-capitalism-ever-done-for-us/#:~:text=Capitalism%20has%20led%20to%20a,interesting%2C%20and%20better%20paid%20jobs.
What has capitalism ever done for us?
https://capx.co/what-has-capitalism-ever-done-for-us/#:~:text=Capitalism%20has%20led%20to%20a,interesting%2C%20and%20better%20paid%20jobs.
23/ A legislator who wishes to make the mining sector suffer & lifeless from increased taxes & pay taxes on behalf of other non-performing or collapsed sectors.
A highly educated professional economist of economically illiterate & anti-market views.
A highly educated professional economist of economically illiterate & anti-market views.
