* Minister says suprises not good for industry
* Says nationalisation “not a smart strategy”
CAPE TOWN Feb 6 (Reuters) – South Africa will not
surprise mining companies with sudden new taxes, although it may
adjust existing tax codes, a leading government minister said on
Monday.
“If there is to be change, I’m pretty sure that the finance
minister and department of mineral resources will take a
long-term view and not impose this one fine morning,” Trevor
Manuel, the National Planning minister, told delegates at a
mining conference in Cape Town.
“I don’t think that surprises are good for an industry like
this, and this is likely to be the trend taken by government in
introducing change,” he said.
South Africa’s ruling African National Congress has
commissioned a study on the nationalisation of mines, which has
yet to be completed. Local media reports have said the study
will reject nationalisation and come out in favour of higher
taxes and royalties.
Manuel said it was critical that sensible taxation exists to
extract rent from the industry and invest in South Africa’s
development.
The Mineral and Petroleum Resources Development Act has a
royalties component that already adds to the country’s tax
regime.
“That it can be improved on is in little doubt. Whether the
levels are correct or not is also open to debate, but the basic
elements are there and is sufficient a platform to build on,” he
said.
Continued…
