Deloitte Tax Newsletter 9/2011
Developments - Proposed Tax Changes
After some industry and stakeholder consultations with the Ministry of Finance, the following developments have been announced by the Deputy Minister of Finance on 19 August 2011:
Proposed amendments that are off the table
The following amendments will not be considered further:
- The abolishing of the standard rating of VAT on the export of raw minerals, unprocessed fish, livestock, game, crude oil and gas will be deferred. The Minister will also reconsider the proposal to disallow refunds of VAT to tourist and non-resident persons who purchase raw minerals, unprocessed fish, livestock, game, crude oil or gas.
- The proposed 5% export levy on raw minerals, unprocessed fish, game, crude oil and gas will be revised. Differentiated levy rates ranging from 0% to 2% are proposed to be applicable to different sectors of the economy and consultations with industry and stakeholders will continue in this regard.
- The increase of the non-diamond mining tax rate to 44% will be abandoned and the rate will remain at 37.5%. The Ministry will investigate the introduction of a formula based surcharge to capture additional mining revenue during better economic periods.
Proposed amendments that are going ahead
Please refer to the attachment for the details of the proposed amendments which will remain under consideration.