President Robert Mugabe has signed into law the Finance Act, which gives Zimbabwe Revenue Authority (Zimra) Commissioner-General sweeping powers to carry out on-site examinations on mining companies, in a bid to plug revenue leakages.
Report by Bernard Mpofu Chief Business Reporter Mugabe also assented to the Appropriation Act (2012), which is expected to give Treasury the muscle to broaden government’s revenue base. The two Acts were gazetted last Friday.
The Finance Act, among other fiscal reforms, would result in several changes at Zimra, that include increasing the current board to eight from five members.
Under the new structure, the secretary for Finance will sit on the Zimra board.
The development came at a time the future of Zimra boss Gershem Pasi is hanging in the balance.
His term of office expired in October last year.
Zimra, according to the new Finance Act, would be empowered to examine security systems at mining locations, examine and make copies of or take extracts from books, accounts, vouchers, documents, maps, drilling logs or records of any kind.
“In addition, officers of the authority authorised in writing by the Commissioner-General are authorised at any time, to enter upon any mining location in Zimbabwe, including premises (other than dwelling houses) or working places situated thereupon, for the purposes of inspecting such location, premises or working places and examining prospecting or mining operations or the treatment of minerals being performed or carried out thereon,” reads part of the Act.
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“. . . Taking soil samples or specimens of rocks, ores, concentrates, tailing, or minerals situated upon that area, premises or working places for the purpose of examination or assay.”
The on-site examination according to the new law, will also scrutinise security systems at mining locations.
It will ensure that mining companies pay royalties or taxes in relation to minerals being extracted.
Zimbabwe mining royalties vary with the type of mineral mined.
In his Mid-Year Fiscal Policy Review, Finance minister Tendai Biti criticised the mining sector, which contributes over 50% of total exports, for not contributing much into Treasury coffers.
He said ongoing changes to the Mines and Minerals Act were expected to unlock value in the sector.
