The chief executive officer of Bubi Rural District Council (RDC), Mr Patson Mlilo, revealed that companies mining in Bubi are now required to pay 55% of their rates in forex to the council. Mlilo indicated that this resolution was arrived at in a council’s meeting held on the 27th of March.
The main argument of the council is that mining companies partially earn forex.
The council’s resolution resonates with the Central government’s Monetary Policy. Mlilo said:
For the mining companies, we are saying that they get 55 percent of their revenues in US dollar and 45 percent in bond. So, the same proportion should be used to pay the local authority’s taxes.
The rationale behind the new arrangement is to improve service delivery. Mlilo said:
“For instance, if a motorised grader develops a mechanical fault, it takes very long to fix it. So if you have foreign currency in your bank account, it makes it easy to procure parts. Even in purchasing fuel, we have been using coupons but each time you get to a service station they might tell you that there is no fuel but when you have forex it is easily accessible and does not stall service delivery.
Related:
- Mining Sector Wants Govt To Allow Them To Keep 80% Of Foreign Currency Earnings
- Zim To Earn US$3.5 Billion From Mining This Year: Minister Chitando
- Mining Firms Appeal To Govt For Incentives
- Govt To Remove 51-49% Shareholding Requirement In Diamond And Platinum Mining
More: Mining Zimbabwe
WhatsApp Group: 
Telegram Group:
Back to top