By Dennis Ndlovu|Zim GBC News<\/p>\n\n\n\n
Zimbabwean lawmakers have urged the government to reconsider proposed royalty rates on gold producers in the 2025 Finance Bill. The parliamentary debate centered on protecting small-scale and artisanal miners, with legislators arguing that higher taxes could negatively impact the crucial sector.<\/p>\n\n\n\n
The original bill proposed adjusting royalty rates for gold miners, sparking fears that it would discourage local producers from selling through formal channels like Fidelity Printers and Refiners.<\/p>\n\n\n\n
MPs across the political spectrum rallied to defend small-scale miners, who contribute a large share of the country\u2019s gold output.<\/p>\n\n\n\n
Hon. Pupurai Togarepi made a clear distinction between local and foreign investors.<\/p>\n\n\n\n
\u201cFor a person who is investing in Zimbabwe, he wants the gold in Malaysia, Britain. we want a share of that gold before it leaves Zimbabwe. However, for a person who is producing gold here in Mazowe, we want all that gold to go into the Reserve Bank,\u201d noted Togarepi.<\/p>\n\n\n\n
He also warned that anything above a 2% royalty for locals would discourage our local gold producers to take gold to the Reserve Bank. We will lose more gold.<\/p>\n\n\n\n
Hon. Supa Mandiwanzira went further, proposing a zero-tax rate for artisanal miners, arguing they are already taxed through price discounts at Fidelity.<\/p>\n\n\n\n
\u201cTo bring another tax is double taxing the small-scale and artisanal gold miner,\u201d he said<\/p>\n\n\n\n
The Minister of Finance, Prof. Mthuli Ncube, conceded to the pressure, announcing a tiered system for large-scale miners based on global gold prices, while leaving small-scale miners\u2019 rates unchanged.<\/p>\n\n\n\n
\u201cFor small-scale miners, no change,\u201d he declared, confirming that their royalty would remain at 2%.<\/p>\n\n\n\n
He explained the compromise.<\/p>\n\n\n\n
\u201cWe have a situation of arbitrage. We think that as much as 50% of the gold being delivered by small-scale producers is actually from large-scale producers because they realise that there is a lower royalty.\u201d<\/p>\n\n\n\n
The debate also extended to other minerals. MPs successfully pushed for an increase in the export VAT on unbeneficiated chrome from 5% to 10%, aligning it with the rate for lithium.<\/p>\n\n\n\n
Hon. Tendai Nyabani argued for even stiffer penalties to encourage local processing<\/p>\n\n\n\n
\u201cIf we give 3%, is it for donating our minerals?. What we want is to have these plants so that the beneficiation is done in Zimbabwe and we create employment in our country,\u201d he said.<\/p>\n\n\n\n
The outcome reflects a legislative consensus on using tax policy to incentivize formal mineral sales and local value addition, while safeguarding the livelihoods of small-scale miners.<\/p>\n\n\n\n
As Hon. Malinganiso Taurai Dexter also said,<\/p>\n\n\n\n
\u201cIf our artisanal miners, our small-scale miners, are charged just one percent, the gold will flock to Fidelity and our reserve will even grow bigger.\u201d<\/p>\n\n\n\n
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