Zim may tax mining sector to fund polls
25 April 2013, 14:48
London - Zimbabwe could introduce new taxes on its mining
sector to help fund July elections instead of borrowing on the debt markets,
Finance Minister Tendai Biti said on Wednesday.
Zimbabwe, which is on the verge of bankruptcy, withdrew a
request for the UN election funding last week, saying the United Nations had
tried to "interfere" in security matters and the media.
"The fact of the matter is that Zimbabwe does not have
the resources for funding the election," Biti said in a speech in London.
The UN loan agreement, thought to be worth $132m, would have
helped fund a viable election for a country that has suffered contested and
bloody elections in recent years.
On April 15, Biti said South Africa would offer Zimbabwe a
$100m loan as an alternative, though a treasury spokesperson said the two
governments were only "engaged in ongoing discussions".
Biti, an ally of Prime Minister Morgan Tsvangarai, who
forged an uneasy power-sharing deal with President Robert Mugabe in 2008 after
bloody and disputed elections, said he was "not keen to borrow".
Aside from enacting fuel duties, which came into effect on
March 9 and raised $80m, Biti said he would consider introducing three or four
other taxes, including some on the mining sector, likely to affect the world's
two largest platinum miners, Anglo American and Impala Platinum.
Under an "indigenisation" policy, Zimbabwe has
been demanding that foreign companies, particularly mining firms but also
banks, transfer a 51% stake in local operations to indigenous investors.
Mugabe's Zanu-PF party proposed a legislative amendment this
week that would have seized majority stakes in foreign-owned mines before the
elections, prompting suspicions the money would be used to fund his campaign.
The amendment, which requires the approval of a parliament
dominated by the MDC, to pass is unlikely to go through.