AfricaPress-Tanzania: REFORMS in the extractive industry have seen the sector contributing 8.03 tri/-, an equivalent to 33.76 per cent, annually to the Tanzania Revenue Authority (TRA) collections.
Speaking at a one-day workshop that involved councillors from Geita District Council this week Minister for Minerals Doto Biteko, said the extractive industry now contributes significantly to revenue collection though more efforts must continue to be made to improve the sector.
According to the minister, out of 33.76 per cent of the revenue contribution from the sector, 16.7 per cent comes from oil and gas while minerals contribute 17.07 per cent.
The minister attributed the rise in the extractive industry revenue contribution to the review of the mining laws governing mineral business in the country, introduction of mineral auctioning centres and improvement in service levy collection.
Mr Biteko urged the ministry’ staffs to closely work with Councillors to resolve challenges facing small- scale miners operating in their areas.
Tanzania Extractive Industry Transparency Initiative (TEITI) Chairperson Mr Ludovick Ottu, commented that The Tanzania Extractive Industries (Transparency and Accountability) Act, 2015 has been, to a large extent, contributing in collection of the revenues, especially through Corporate Social Responsibility (CSRs).
Geita Regional Commissioner, Engineer Robert Gabriel said the Mining Act amendments and establishment of mineral auctioning centres contributed in improving the region’s mineral revenues, with the sector contributing about 4bn/-, between August and December last year.
The mineral collection at various mineral auctioning centres helped the region to collect revenues amounting to 63.8bn/- in 2020, affirmed the RC.
Reached for clarification on how oil could contribute to TRA revenues while the country is yet to strike it, Geita Regional Mining Officer, Mr Daniel Malinda, said: “oil and gas fall in the same category of resources. So there is no way oil can be excluded when mentioning the sector’s contribution.”
According to Mr Malinda, the larger part of the contribution come from income and corporate taxes.
In another development, the government has invited stakeholders in the mining sector to take part in this year’s annual International Mineral and Mining Investment Conference, which is expected to start today.
Mr Biteko made the call during a press conference held on Saturday in Dar es Salaam, noting that the aim of hosting the meeting is to promote investment opportunities found in the country’s mining sector.
“Besides promoting the available investment opportunities, the conference will help to obtain investors with regard to other mining activities.
“Our intention is to convey to the world the country’s conducive environment for investment,” said Mr Biteko.
Carried out under the theme of “Mining Sector for Stable Economy and Sustainable Development” the meeting will officially be opened on Monday by the Vice President Samia Suluhu.
He pointed out that leaders and experts in the mining sector from nine different countries will participate in the meeting physically and virtually.
Equally, mining companies from within and outside the country will take part in the conference.
The conference will go in line with an exhibition on exploration, mining, value addition, mineral refining and mineral trading.
Among other goals include linking consumers of minerals particularly those with industries with miners.
The minister observed that the country is blessed with a big number of industries, which exploit raw materials emanating from minerals.
“Due to their importance, the ministry thought it to be wise to invite them to meet with the miners to discuss the quantity and quality being demanded,” he said.
In addition, linking the miners and parties offering various services, involving mining activities being carried out in the country’s mines.
According to Mr Biteko, different views will be drawn from the miners and stakeholders, which will help to further improve supervision in the mining sector.
Equally, the participants and stakeholders will be educated on the mining sector and the laws which are safeguarding the mining sector in the country.
The Minister pointed out that this year’s meeting will be accompanied by an event to award stakeholders who did well in the execution of the mining laws the likes of taxes, corporate social responsibility among others.
In encouraging the issue of value addition and promoting the use of mining products like jewelries among Tanzanians, the Ministry has prepared a special exhibition on the area.
He noted that the aim of hosting the exhibition is to promote the products which are being produced from within the country.
