Tanzania: State Revenues in Mineral Sector Up By 52.6 Percent

Government spokesman and Secretary General of the Ministry of Information Dr. Hassan Abbas talking to reporters about the success of the

5th phase government in the mining sector in Dar es Salaam yesterday. PHOTO|SAID KHAMIS 

By Louis Kolumbia

Dar es Salaam — The government collected a total of Sh528 billion in the mining sector by June 2019/20 as compared to Sh346 billion collected in the same period of 2018/19 financial year.

That means Sh182 billion more has been collected during that time which is equivalent to 52.6 percent of the increase.

Government Chief Spokesman Hassan Abbasi made the revelation yesterday when outlining the government's achievements in the energy and mineral sectors over the last five years.

Addressing journalists during a live broadcast, Dr Abbasi said minerals generated Sh301 billion in 2017/18 and Sh213 billion in 2016/17.

According to him, Sh207 billion and Sh168 billion have been collected in 2015/16 and 2014/15 fiscal years respectively.

"Collections made in the 2019/20 fiscal year have surpassed Sh470 billion target set by the government. This indicates that reforms made in the sector are now highly benefiting the country and individual Tanzanians," he said.

Also Read

Clerics, NEC dialogue over polls

NEC: We will only clear legitimate candidates

Citrus industry under threat in East Africa

Four kidnapped Chinese workers freed in Nigeria: police

The spokesman explained that the construction of the Mererani perimeter wall has led to increased amount of Tanzanite declared from 781 kilos in 2018 to 2,772 kilos in June 2020.

According to him, revenue collections from small miners in Mererani have increased from Sh71 million in 2018 to Sh2.15 billion as of June this year.

"Annual increase in the gemstone declared and revenue collections gives more hope that Tanzania should expect a lot more from investments made in the area," he said.

Dr Abbassi, who doubles as the permanent secretary in the Ministry of Information, Culture, Arts and Sport, said at least 31 mineral centres and 39 sub-centres have been established countrywide.

As a result revenue collections in resource rich areas such as Geita and Chunya have increased from Sh878 million and Sh94 million in 2018 to Sh2.6 billion and Sh1.2 billion in 2020 respectively, according to him.

He said the government has attracted 3,468 domestic and foreign investors in the sector during that period, noting that reforms didn't discourage domestic and foreign investment partners.

He said domestic and foreign investors increased to 5,094 in 2018/19 from 3,664 in 2017/18 before climbing to 7,132 June this year.

"Business climate in the mineral sector has been improved through reduction of tax to mineral traders and small miners by 23 percent including withholding tax (5 percent) and 18 percent of the Value Added Tax (VAT)," he said.

He said the government spearheaded legal reforms in its efforts to turn country resources into a blessing instead of curse like what is happening in other countries.

Such reforms led to formation of the Mineral Commission mandated with licensing, supervision and revenue collections in the mineral sector, according to him.

Dr Abbassi said the formation of Twiga Mineral Company has given an opportunity to Tanzanians to have a place in the company's management and board of directors, hence giving citizens ownership of their minerals.

"Unlike in the past, mineral concentrates are now exported after the country has established the mineral content in the consignment, value, expected tax and government's earnings," he said.