daniel chigunwe
Farirai Machivenyika
Senior Reporter
FOLLOWING the signing into law of the Finance Act by President Mnangagwa last week, a two percent levy on gross value of lithium, black granite, quarry stones, uncut and cut diamonds sold locally or abroad will now be charged and must be paid in the currency of trade.
The new provision came into force on January 1, 2025.
“The levy on gross value of lithium, black granite, quarry stones and uncut and cut dimensional stone chargeable in terms of section 36P of the Taxes Act shall be two percent of the gross value of the sale within Zimbabwe or on export of lithium, black granite, quarry stones and uncut and cut dimensional stone, which levy must be payable in the currency of trade,” reads part of the Finance Act.
The provision is part of efforts by Government to increase revenue collected from the country’s mineral resources.
The new levy is an increase on the one percent that was charged previously.
The new law also explicitly states that authority of all underground natural resources on which royalties are charged, vests in the President.
“For the avoidance of doubt, it is declared that dominium in the subsoil resources on which royalties are charged vests in the President by right of prerogative, which right may be expressly amended, abridged or limited by this Act or any other Act of Parliament for as long as this or any other such Act is in force,” the Act further reads.
Beginning January 1, the Finance Act also prohibits the acquisition or transfer of mining title to entities that are not registered for tax purposes.
“No registration of the acquisition of a mining title by a mining entity shall be executed, attested or registered by registrar or other registering official by whatever name called responsible for registering rights, titles and transfers or amendments thereof in terms of any of the Mines and Minerals Act [Chapter 21:05] unless there is submitted to the official concerned by either of the parties or their agents concerned in the transaction a certificate issued by the Zimbabwe Revenue Authority stating that the recipient mining entity is a registered taxpayer or, if such mining title has been registered without such certificate having been submitted, the transfer of such mining title or share, stake, right or interest in any mining title is deemed to be void, and shall be cancelled upon the request in writing of the Commissioner-General to that effect,” reads the Act.
The new tax measures announced in the Finance Act for the mining sector are meant to increase revenue from the country’s vast mineral resources.
Siphakeme .Mnindwa
