GEITA.Research results show that the nation loses up to $1.25 billion (about Sh2 trillion) annually due to smuggling of minerals and gemstones as well as tax evasion.
To a large extent the loss is caused by small scale miners, most of who do not declare what they get in their activities, thus exporting the minerals and gemstones through illegal channels.
This was revealed by the Tanzania Minerals Audit Agency (TMAA) officials who were training small scale miners on mining laws and the benefits of paying taxes and levies.
“There is serious problem of tax evasion by small scale miners. Many of you sell your products, sometimes to foreigners, without declaring to relevant authorities. This subjects the nation to serious losses,” said Mr Julius Mosho who serves as TMAA Research and Planning manager.
He said that many artisan miners have been acting against the set standards because they were ignorant of the 2010 Mining Act and its accompanying regulations.
“Many small scale miners do not keep records of their activities thus making it impossible to even estimate what they obtained in a year,” he said.
However, the small scale miners defended themselves noting that they did not evade paying taxes. They instead blamed the government for not putting for them conducive environment which would enable them to operate legally and effectively. They noted, for instance while government officials heap blame on them for not paying taxes, the same have failed to assist them in finding lucrative markets for their minerals.
They also noted that many of them were not aware of the requirements contained in the law and regulations because the vital documents have been prepared in English, a language which most of them do not understand. “We can keep proper records if we earn what is worth our investments. If you give us reliable market you will be in good position to earn something from us because you will know where we are selling our products,” said Ms Theresia Samweli, an artisan miner.
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