Gordhan brings perspective to tax fears

[miningmx.com] – PRAVIN Gordhan, South African finance minister, brought a modicum of perspective to fears the government was imminently planning a tax overhaul of the country’s mining industry.

In an interview with Bloomberg TV, Gordhan said planned tax changes were in discussion but would only be implemented “at the right time”. Gordhan was speaking at the World Economic Forum at Davos, Switzerland.

Gordhan added, however, that proposals by Anglo American Platinum, which is 78% owned by Anglo American, to reduce production that could affect 14,000 jobs had been an “unhelpful” development.

However, in stark contrast to the strident words of mines minister, Susan Shabangu, who ordered her department to investigate Anglo American’s compliance with its mining permit obligations, Gordhan called for perspective regarding the proposed restructuring of the mining sector.

“We must be careful not to take a dispute in one or two mines in the platinum sector and generalise it to mining, because coal is working fairly well, oil is working fairly well, gold is working fairly well,’ he told Bloomberg TV.

Commenting on proposed tax changes which are thought to have been ratified in provisions at the African National Congress’ (ANC’s) national conference in Mangaung, Gordhan said: “There is no question of any taxes at this time.

“We will keep the matter under review and when we think it’s appropriate we’ll see how the regime needs to change.’