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Govt collects $55m royalty from gold
2006-02-15 07:50:23
By Guardian Reporter, Dodoma
The government collected a total of US$54,765,462 as royalty from the sale of gold from 2000 to 2004, the House was told yesterday.
Deputy Minister for Energy and Minerals, Lawrence Masha, said the government also got US$158,601,141.68 as levies, including payroll levy, Veta levy and so on.
Masha was responding to a question by Hamad Rashid Mohamed (Wawi, CUF) who wanted to know the amount of money the government had collected as royalty for the period of 2000 to 2005.
Mohamed also wanted to know the government’s strategy to increase revenues from the sale of gold.
The deputy minister said the government had been receiving royalties from sale of gold.
He said as per the law that governs mining, the royalty was paid basing on net back value after the investor has deducted insurance, freight and refining costs.
Masha said the amount of royalty varied from mineral to mineral. He said diamond was charged at five per cent while other minerals were charged at three per cent.
He said the government was now doing geological survey to establish other minerals in order to increase the government revenue.
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