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SA to start mining royalties

Feb 17 2010 15:38

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Cape Town - South Africa will from March 1 this year levy mining royalties that were postponed due to last year's recession, the National Treasury said in the 2010 Budget Review on Wednesday.

"The introduction of mining royalties was postponed for a year due to the recession and will be levied on minerals disposed of or exported from March 1 2010," the treasury said.

South Africa's first recession in almost two decades hurt company earnings and household budgets. Due to the recession government revenue was R73.7bn short of the targeted R731.235bn for 2009/10.

The treasury said it expected 2010/11 to be another challenging year for revenue and it will rise slightly to R738.404bn in 2010 financial year.

There were no changes to corporate tax and this category will continue to be under pressure in 2010/11 due to the effects of the economic recession last year.

Company tax is expected to be R30bn less than anticipated and over 20% short of the amount collected in 2008/09.

The treasury said it would not increase the overall tax burden this year, but may have to raise taxes in future to fund public spending commitments.

It proposed a R6.5bn tax relief for households, mostly to lower-income earners, to help sustain the economic recovery. However, motorists will be hit with 25.5 cents a litre fuel tax.

- Reuters

 
 
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