JOHANNESBURG Feb 8 (Reuters) – South Africa’s ruling
ANC is considering starting a sovereign fund from proceeds of a
proposed new mining tax that could be used to intervene in the
market to cap gains in the rand currency in times of a commodity
boom.
“A Resource Rent Tax (RRT) of 50% must be imposed on all
mining,” according to a study on mining sector reforms submitted
to the African National Congress, a copy of which was obtained
by Reuters on Wednesday.
“The RRT proceeds should ideally be kept in an offshore
Sovereign Wealth Fund to ameliorate the strengthening of our
currency during commodity booms.”
(Reporting by Phumza Macanda)
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