Money raised should be 'deployed in the interests of long-term economic growth and transformation'
The African National Congress has rejected proposals to nationalise the country’s mines but supports a windfall “resource rent” tax on mining firms, according to a draft policy document seen by Reuters
“The State must capture an equitable share of mineral resource rents and deploy them in the interests of long-term economic growth, development and transformation,” the draft of party’s economic policies said.
The “resource rental tax” is effectively a windfall levy of 50% that will kick in after investors have made a "reasonable return". As such, it is meant to leave marginal or junior operations unaffected.
The ANC also recommended increasing “the supply of coal at competitive prices with the aim of containing energy costs” but did not provide any details of how to achieve that end.
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ANC wants extra tax on mine companies
Money raised should be 'deployed in the interests of long-term economic growth and transformation'
The African National Congress has rejected proposals to nationalise the country’s mines but supports a windfall “resource rent” tax on mining firms, according to a draft policy document seen by Reuters
“The State must capture an equitable share of mineral resource rents and deploy them in the interests of long-term economic growth, development and transformation,” the draft of party’s economic policies said.
The “resource rental tax” is effectively a windfall levy of 50% that will kick in after investors have made a "reasonable return". As such, it is meant to leave marginal or junior operations unaffected.
The ANC also recommended increasing “the supply of coal at competitive prices with the aim of containing energy costs” but did not provide any details of how to achieve that end.
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