Tax rebate on mining equipment

GOVERNMENT has provided a list of mining goods that will attract a debate on duty.

In a statement, the Zimbabwe Revenue Authority (Zimra) said the rebate will be granted only in respect of goods imported or taken out of bond by persons engaged in the mining industry.

Eucalyptus, pine and other oils for use in the extraction of gold and other minerals by the flotation process will attract a rebate alongside chemical substances, other than spirits, methylated spirits, fuel oils, lubricants and nitrate of lead, for use in any process for the concentration or refining of ore, or for assay or research purposes.

The previous rebate given according to section 120(1)(b) of the Customs and Excise Act (Chapter 23:02) as read with section 113(1) of Statutory Instrument 154 of 2001 (General Regulations) covered capital equipment certified by the secretary of the responsible ministry for that industry and approved by the Finance minister on importation.

The rebate of duty did not cover motor vehicles intended for use on roads or capable of being used on roads.

Importers should submit a letter of undertaking to Zimra offices to the effect that the goods shall be used solely for mining purposes.

“If they are sold or otherwise disposed of the duty rebated shall be paid forthwith to the commissioner,” the statement read.

Also to be attached will be a proforma invoice showing the full description and quantity of the goods to be imported under the rebate, end user’s certificate, a letter from the mining commission to confirm the existence of that mine and valid tax clearance.

“At the time of the clearance of the goods, the importer shall be required to attach the rebate letter to the bill of entry form 21. The respective regional office shall issue a rebate letter specific to the products listed in the application and the proforma invoice,” Zimra added.