Tax collection system in the mining sector: Legal framework for an efficient and transparent system

Tax collection system in the mining sector: Legal framework for an efficient and transparent system

Blog Article

DRC and Tanzania are two neighboring countries with mineral rich deposits that could be the driving force of their economies.Yet, they remain among under developed countries in the world in general and in Africa in particular.Their populations are still languishing under the poverty threshold while their youths are desperate.

After increasing a cga 200 to cga 510 adapter fiscal burden of corporates exploiting its mineral in 2018, the DRC intended to make the mining sector more fruitful than ever before.3 years following such ambitious reforms, outcomes are yet to be seen.In fact, the mining sector has not increased the public revenue todate.

Lack of transparency in the management of the sector should be fingered.Meanwhile, the Congolese government seems willfully negligent to vehemently address this abnormal situation.On the other hand, Tanzania has reportedly performed well in the mining sector thanks to the strong leadership of its late President Dr Joseph John Pombe Magufuli.

Despite such efforts some questions still evolve with regard to the importance of the sector towards socio-economic development.In the same line specific question has been asked on how does one enhance contribution of the click here mining sector to significant increase of GDP for the two countries? To respond to the question, this paper outlines the state of play of legal reforms underwent by the two countries in the mining sector in the last ten years.Thereafter it suggests ways of increasing transparency in the sector and shows what DRC should learn from Tanzania.