Only 10 out of 2000 Tanzanian companies pay mining taxes

Tanzania is experiencing an increase in tanzanite revenue losses due to the unscrupulous trading and jewel smuggling in the country.

Government however is moving to establish a tanzanite processing zone, which may prove to be an essential infrastructure for the mining industry to curb tax evasion.

Almost 2 000 companies are engaging in tanzanite mining, a mineral that is only available in Tanzania, do not pay taxes to the Simanjiro District Council as required by the law, this according to local leaders.

Endiamtu Councillor, Phillemon Oyogo and Tanesco Street Chairman, Justin Sarakikya, said the investors are getting the precious jewel without being accountable in terms of taxes.

The tax evasion has a direct link to the state of the poverty stricken and underdeveloped Simanjiro, which is lacking basic social services.

Councillor Oyogo, who was addressing media in the mining area, said there are more than 1 960 registered companies operating at Mirerani in Manyara Region, but only 10 out of them pay the required dues.

“Non-compliance has resulted in poor service delivery by Simanjiro District Council. Why is such a situation tolerated in this area while in other areas, companies are shouldering their responsibilities by making local towns prosper,” said Oyogo.

The councillor said he was armed with documents from the council of companies that pay the levies as passed by Simanjiro councillors. He said he could not understand why out only 10 companies were paying their taxes. He called on district authorities to take action so that the government gets its share.

Source: Mining News

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