VAT halted on mining imports to Congo

By Iain Gilbert

Date: Thursday 17 Aug 2017

VAT halted on mining imports to Congo

(ShareCast News) - After reinstating a value-added tax (VAT) on imports by mining companies in mid-2016, The Democratic Republic of Congo has again suspended the duty.
In order to protect the Congolese franc, the DRC suspended reimbursements of VAT in April 2016 and halted VAT on imports but later reverted back to collecting VAT following the expiration last month of a decree halting remittances.

The decision to put a stop to VAT reimbursements had also been intended to assist the government in its handling of a $700m backlog of payments owed to mining companies in the megadiverse Sub-Saharan nation.

Congo's currency lost 21% of its value last year as metals price fell, leaving a dent in the country's $35bn economy.

"The finance minister has given an instruction to the DGDA to not collect VAT on imports by mining companies," Federation des Enterprises du Congo managing director, Kimona Bononge told Bloomberg, referring to the tax-collecting department within the ministry.

The largest resource of cobalt in the world is located in The Congo, a key ingredient in batteries used in items such as iPhones and smart cars.

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