DodomaThe government, through the Ministry of Minerals, is continuing efforts to reduce the tax burden on small-scale gold miners in the country by reviewing various fees and taxes levied in the mining and processing chain of these minerals.
This was revealed by the Minister for Minerals, Anthony Mavunde, on February 7, 2025, in Parliament in Dodoma, while responding to a question from Busanda Constituency MP, Tumaini Magessa, who asked when the government would review the existing taxes in the gold mining and processing chain that are burdening small-scale miners.
In his response, Minister Mavunde said that through the Business Environment Improvement Strategy (MKUMBI), the Ministry of Minerals had conducted research on 66 fees imposed by various Local Government Authorities in gold mining and processing activities.
Some of the taxes identified include surcharge fees, inspection fees, Value Added Tax (VAT on leaching/CIP), taxes on transporting mineral ores, and residues (waste rocks after processing).
"To address these challenges, the Ministry convened a meeting in August 2024 in Singida, involving the President's Office, Regional Administration and Local Government (OR-TAMISEMI), Ministry of Finance, Mining Commission, STAMICO, District Councils (Ikungi, Chunya, Kahama, Msalala, Meatu, Shinyanga, Mtama, and Lindi), FEMATA, and TAWOMA.
A draft proposal for improvements has already been prepared and is under review and evaluation. The results of this evaluation will guide us in determining taxes that are more favorable to small-scale miners," said Minister Mavunde.
Furthermore, Minister Mavunde added that the government is also making significant improvements in the tax system through the Tax Reforms Commission established by President Dr. Samia Suluhu Hassan.
The commission is expected to provide recommendations that will help reduce the tax challenges faced by small-scale gold miners and the mining sector as a whole.
These steps demonstrate the government's commitment to improving the environment for small-scale mining and enhancing the sector’s contribution to the national economy.
