Tanzania Plans to Levy Super-Profit Tax on New Entrants

13 June 2011 (Last Updated June 13th, 2011 18:30)

Tanzania will discuss with mining companies how a super-profit tax will be implemented if the parliament approves the proposed plan. Tanzanian Mines Minister William Ngeleja said new entrants to the mining industry would automatically pay the tax, reports Bloomberg. The country

Tanzania will discuss with mining companies how a super-profit tax will be implemented if the parliament approves the proposed plan.

Tanzanian Mines Minister William Ngeleja said new entrants to the mining industry would automatically pay the tax, reports Bloomberg.

The country's planning commission recently released a document, which considered introducing a super-profit tax in the mining industry to fund a proposed $27bn economic-development plan.

Tanzanian Parliament passed a mining law last year that allows the government to have a stake in all future mining projects and increased royalties on minerals from 3% to 4%.