South Africa Mining Taxes Double to US$3 Billion
Higher gold and platinum prices have handed South Africa a mining tax windfall, easing pressure on public finances that US bond investors watch closely. The post South Africa Mining Taxes Double to US$3 Billion appeared first on The Rio Times .
South Africa's mining taxes more than doubled to approximately US$3.0 billion over the past year, driven by soaring gold and platinum prices, according to a report by PwC's annual SA Mine review. The revenue surge eases pressure on government borrowing and boosts mining companies listed on the New York Stock Exchange. Increased gold and platinum prices, up 50% and 80% respectively from the previous year, are the main drivers behind the tax hike.
Corporate income tax from all companies rose by 23% to R155.8 billion, while total gross tax revenue grew by 7.9% to R819.8 billion. The National Treasury reported that mineral and petroleum royalties collected from April to August more than tripled compared to the same period a year earlier. Despite the tax increase, mining output only rose by 2% in the year to June and remained about 5% below 2019 levels.
The boom in mining taxes has not yet translated into larger-scale mining expansion, with companies focusing on efficiency and extending the lives of existing mines. The proposed Mineral Resources Development Bill, which would rewrite mining rights rules, has raised concerns among industry representatives, who argue it does not encourage investment and growth.
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