Zimbabwe Introduces New Lithium Levy And Wealth Tax. The Zimbabwean government has introduced a new charge on lithium and also a wealth tax to generate funds for urban infrastructure development.
A yearly budget presented by Finance Minister Mthuli Ncube forecasts expenditure will increase from the current Z$4.3 trillion to 58.2 trillion Zimbabwe dollars ($10 billion) in 2024, and the funding will majorly come from tax revenue which is expected to rise to Z$51.2 trillion.
According to the finance minister, to generate more income, the government will charge a 1% levy on the gross earnings of lithium, black granite and other stones used in construction, and also a 1% wealth tax will be imposed on owners of residential properties worth at least $100,000.
He continued that the revenue generated from imposing these taxes will put towards the development of roads, water, sewers and community health centers.
Zimbabwe Introduces New Lithium Levy And Wealth Tax: More from the Ministry
According to Mines Ministry data, Zimbabwe generated $209 million from lithium exports in the nine months through September, as a country with Africa’s largest lithium reserves and other minerals used in the production of batteries for electric vehicles.
Ncube mentioned that to get their licenses, lithium miners are required to submit their beneficiation plans for approval on or before March 31.
Sinomine Resource Group Co, Chengxin Lithium Group Co, and Zhejiang Huayou Cobalt are some of the Lithium miners in Zimbabwe.
He also said that, as part of the government’s proposal, companies that don’t undertake value-addition processing will be subject to an export tax.
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