HARARE – The Zimbabwe Revenue Authority (ZIMRA) is now responsible for deducting payments for fees and commissions at the point of receipts of mineral exports proceeds assuming the role previously held by the Minerals Marketing Corporation of Zimbabwe (MMCZ), says the Reserve Bank of Zimbabwe (RBZ) in a statement late last night.
This comes after the apex bank received numerous requests from mining exporters on the need to continuously improve the ease of doing business arising from complications around payment of fees and commissions to the MMCZ.
“To make payment of statutory deductions easy for exporters of minerals, with immediate effect, all commissions and royalties that are due and deductible at the point of receipt of export proceeds will no longer be deducted by MMCZ. All applicable taxes shall now be paid to the ZIMRA in the normal manner,” said RBZ Governor John Mangudya.
“The above measures mean that exporters of minerals can export their minerals and receive their export proceeds from their customers without any deductions by MMCZ.”
He added that the current 60% retention threshold on all export proceeds remains applicable.
The country has set an ambitious target of attaining US$12 billion by 2023 in potential revenue from the mining industry. According to the 2021 Budget Strategy Paper, mining will be the leading sector in sustaining high and shared growth during the 2021 fiscal year.
Experts say the competitiveness of doing business for the mining sector has been negatively affected by the high cost of doing business in the southern African nation coupled by high cost drivers, poor infrastructure, unrealistic foreign currency controls accelerated by forex receipts retention, high tax burdens and policy flip flops.