- Zimbabwe’s Finance Minister, Professor Mthuli Ncube, has removed the 15% VAT on gold deliveries to Fidelity Gold Refiners.
- Zero-rated goods are exempt from VAT to support broader supply chains.
- Statutory Instrument 105 of 2024 officially zero-rates gold deliveries to Fidelity.
- The 15% VAT had previously caused cash flow issues for small-scale miners.
- Small-scale miners contribute about 60% of Zimbabwe’s gold production.
- The Chamber of Mines of Zimbabwe welcomed the change, noting the VAT had complicated operations.
- The zero rate is expected to increase gold deliveries to Fidelity Gold Refiners.
- Gold deliveries decreased by 2.4% from 11.45 tonnes in the first five months of 2023 to 11.2 tonnes in the same period in 2024.
- Small-scale miners delivered 5.8 tonnes, while large-scale producers contributed 5.37 tonnes.
- The 2023 gold deliveries to Fidelity were 30.1 tonnes, with a 2024 target of 40 tonnes.
- Economist Dr. Prosper Chitambara stated the move aligns with economic goals and supports the new Zimbabwe Gold (ZiG) currency.
- The policy aims to increase gold in formal channels, improve foreign reserves, and strengthen the balance of payments.
Source: allafrica.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
