Mining royalties of up to a limit of 50 % now payable in Zimbabwe Dollars

Mining royalties of up to a limit of 50 % now payable in Zimbabwe Dollars

By The Mining Vision Staff Writer

All mining royalties are now payable in Zimbabwe Dollars up to a limit of 50% of royalties due, the Minister of Finance and Economic Development Professor Mthuli Ncube has revealed in a statement released this Friday.

This development comes into play with immediate effect along with other measures instituted by the government to enhance the domestic use of the Zimbabwe Dollar.

“All duties and taxes on the importation of designated motor vehicles are now payable in Zimbabwe dollars again up to a limit of 50% of duties and taxes payable,” Professor Ncube said adding that: “All domestic taxes due from exporters on their export receipts are now payable in both foreign and local currency in direct proportion to the approved export retention levels.”

“As an example, an exporter who receives foreign currency of say USD1000.00 at a 40% surrender ratio (60% retention) will pay taxes on the 40% in Zimbabwe dollars and the 60% in foreign currency.

Professor Ncube highlighted that these measures reflect government’s commitment to promote the wider use of the Zimbabwe Dollar and to continuously strengthen the economy so as to build long lasting macro-economic stability.

The Apex Bank Governor Dr John Mangudya had earlier on said that RBZ remains committed to stay on the course of conservative monetary targeting framework through putting in place measures to promote the use of the local currency to reduce demand for foreign exchange for domestic transactions among other measures. He said this while presenting the State of the Economy and Outlook for 2022 at the CEO Africa Roundtable CEOs Business Breakfast held in Harare on 27 January.


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