By Sam Chansa
The mineral and petroleum royalty regime has helped to broaden the tax base and stabilize collected revenue during periods where fluctuations in commodity prices are frequent. It is proposed by the Minister of Finance that a broader review of the tax system be undertaken. A key focus area for reform will be an assessment of the most appropriate mining tax regime to ensure that South Africa remains a competitive investment destination.
A tax exemption, similar to the one granted in respect of contributions to a rehabilitation fund, is proposed in respect of contributions to the Mining de-watering association.