[miningmx.com] – THE Davis Commission, created to review South Africa’s tax system, would review a dispensation offered to the country’s gold industry that allows it to pay less tax when margins decline, said BDLive.
“Given that gold mining is a declining industry, it may be worth reviewing whether the favourable tax treatment accorded to gold and uranium mining is still justified,” BDLive reported citing comments on the commission’s website for public opinion.
“When mines are very profitable they pay high taxes, but when they are marginal they pay less in order to ensure they survive,” said Chamber of Mines economist, Monique Mathys. The average tax rate paid by gold producers affiliated to it in 2014 was 25%.
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