Business Reporter

Finance Minister Tendai Biti has called on Government to urgently amend the country’s mining and taxation laws if Zimbabwe is to benefit from its huge natural resources.

Minister Biti’s call comes amid revelations that the country’s earnings from the sector were minimal due to multiple tax rebates and concessions available through the mining law.

He said Zimbabwe possesses a number of minerals that include platinum, gold and methane gas but has left everything in the hands of the mining companies.

The mining sector is contributing a paltry 4 percent of Gross Domestic Product despite huge profits being realised by mining firms.

Minister Biti made the remarks at a recent debt management seminar in Harare. He said: "There is need to amend the Zimbabwe’s mining and taxation laws so that the country benefits from its natural resources. If we are going to wait for royalties and taxes, Government can forget using the minerals to pay for the country’s debt.

"The mining sector requires a transparent, honest and proper evaluation report. If we are not transparent in this sector, then we should not talk about a resource-based debt repayment strategy," he said

He said Zimbabwe’s mining laws were highly preferential of the capital outlay resulting in its contribution to the fiscus being very minimal as compared to other countries in the region. Minister Biti said his ministry was working on a new Income Tax Act that would see a reduction in rebates.

Contributing to the discussion, a former diplomat, Ambassador Chris Mutsvangwa, said Zimbabwe needed to ensure that its minerals were offered to the highest bidder on the global market. This, he said, was only possible if the nation has rights to its mineral resources.

"The changes in the world market present a prime time for countries with resources. Zimbabwe has a potential to earn more from its resources. Resource pledging has been used by other countries but that requires that we own these minerals," he said.

The debate on a national debt payment strategy has taken a two-prong approach with one side arguing for resource pledging while the other has advocated that Zimbabwe declare itself a Highly Indebted and Poor Country.

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