Zimbabwe Enacts Platinum Export Tax

February 3, 2015 Taxation in Zimbabwe

HARARE – Platinum exporters in Zimbabwe may be forced to pay an export tax unless they agree to build refineries in the country.

Earlier this week the Finance Minister of Zimbabwe Patrick Chinamasa announced that the currently proposed tax on the export of unrefined platinum will be implemented this year, despite earlier promises to delay the implementation for another two years.

The tax, which is planned to be charged at a rate of 15 percent, was initially proposed in 2013, and was intended to be a means of encouraging platinum extractors to refine the metal in Zimbabwe, instead of exporting the metal in its raw state.

In November last year the government announced that the tax would be delayed until January, as the Finance Minister was under the impression that exporters operating in the country had agreed on a roadmap to begin construction and use of refinement facilities in the country.

However, since the time of the announcement, it has been disclosed that no such roadmap has been prepared.

The tax is now scheduled to take effect from January 1st 2015, and exporters will need to begin payments from early February.

Exporters of platinum in Zimbabwe have already said that they are now seeking clarity from tax authorities, and have emphasized that the infrastructure in the country is not sufficient to build and operate a refinery facility.

Photo By: James St. John