Tanzania: Mining Sector Targets Increased Revenue Collection

THE Ministry of Minerals is focusing on strengthening revenue collection to boost the contribution of the mining sector to the Gross Domestic Product (GDP).

Revenue collection is part of several key priority areas that will be given an added impetus in the 2021/22 fiscal year, Parliament was told yesterday.

Presenting his ministry's budget estimates, Minister for Minerals, Dr Dotto Biteko, said government focus is to collect 696,441,872,667/- for 2021/2022 compared to 547,735,863,597/- for fiscal year 2020/2021.

He pointed out that of the funds so far collected, 650,010,002,000/- (equivalent to 93.33 percent) would be submitted to the Treasury and 46,431,870,667/- (equivalent to 6.67 percent) would be used by institutions under the ministry.

According to him, the ministry would make efforts to develop small-scale miners and enable citizens to participate in the mining economy, adding that the ministry is also looking forward to encourage mineral value addition activities, encourage trade and investment in the mining sector and oversee the mining operations audit system.

Dr Biteko said that the ministry would encourage and attract trade in mining with other African countries, especially the East African Community, Southern Africa Development Community and the Great Lakes Region to make Tanzania a hub for mining business.

He also pointed out that the ministry would build the capacity of its institutions to carry out their responsibilities effectively, especially developing human resources and improving the working environment.

In strengthening revenue collection and increasing the contribution of the mining sector to the GDP, Minister Biteko told the House that his ministry would support the control and management of large and medium mining so that it could benefit the nation and investors equally.

He said that the government through the ministry would implement strategies for controlling smuggling and illegal trade in minerals in the country by strengthening mining markets.

"We will establish and strengthen the Kalema gold market, open and manage largescale mining and place emphasis on graphite and other minerals," the minister said.

He further explained that government would develop strategies to strengthen the market for Tanzanite and other gemstones to increase revenue and ensure all large and medium mines employ, purchase services and products from the country at a reasonable rate.

In promoting small-scale miners and enabling citizens to participate in the mining economy, the ministry would design and strengthen the implementation of programmes to enable them to carry out their activities effectively by allocating areas or providing licences with basic geological information.

He said the government would link small miners with banks so that they could get loans; providing low-cost research services, developing small and medium and largescale miners and providing them with the necessary training on mining and refining skills.

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