Cape Town - President Jacob Zuma on Thursday announced a review of the country's tax policies, including the mining tax regime.
“Later this year, the minister of finance will be commissioning a study of our current tax policies, to make sure that we have an appropriate revenue base to support public spending,” Zuma said in his state-of-the-nation address.
President Jacob Zuma delivers his 2013 state of the nation address. Credit: INLSA
“Part of this study will evaluate the current mining royalties regime, with regard to its ability to suitably serve our people.”
Speculation has been rife for some time that South Africa would raise mining taxes.
Earlier this month Mineral Resources Minister Susan Shabangu told the Mining Indaba 2013 the country's mining taxes were “competitive”, but it was normal to review the regime from time to time and stressed that they should “respond to the needs of the country”.
She added, however, that it was not a foregone conclusion that higher taxes would be imposed.
Zuma said he believed that at a policy level certainty had been restored to the mining sector, notably by burying the nationalisation debate at the ruling party's elective conference in Mangaung in December. - Sapa