Tanzaniaâ€™s Mining Sector and Its Implications for the Countryâ€™s Development
AbstractThis paper analyses the factors that reduce the mineral sectorâ€™s contribution to the Tanzanian governmentâ€™s revenue. This sector accounts for nearly half of the countryâ€™s exports and places it among Africaâ€™s largest exporters. Yet, ordinary Tanzanians have seen little benefit from their countryâ€™s exports boom. This is partly because the government has enacted tax laws that are, as we shall see, overly favorable to multinational mining companies, and partially due to the business practices of the companies themselves. The situation is further exacerbated by these companies avoiding taxes altogether by claiming losses. Nonetheless, they continue to invest in operations. Critics argue that the government fails to capture a substantial amount of state revenue as a result of low royalty rates, unpaid corporate taxes and tax evasion major gold mine operators. This paper argues that the Tanzanian government should increase its involvement in the mining industry by entering into joint ventures with mining companies, or by increasing its shares in them. Its involvement will result in an increase in tax and royalties collection.
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Bibliographic InfoPaper provided by Hochschule fuer Technik und Wirtschaft, Berlin in its series Competence Centre on Money, Trade, Finance and Development with number 1104.
Length: 25 pages
Date of creation: Aug 2011
Date of revision:
Publication status: Published in Berlin Working Papers on Money, Finance, Trade and Development, August 2011
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Web page: http://finance-and-trade.htw-berlin.de
working paper; daadpartnership; finance-and-trade;
Find related papers by JEL classification:
- L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
- N57 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Africa; Oceania
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Dani Rodrik, 2008. "The Real Exchange Rate and Economic Growth," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(2 (Fall)), pages 365-439.
- Eva NÃ¤fe & Barbara von Toll, 2011. "Is Broad Industrialisation Imperative for Development? Case Studies on Uganda and Tanzania," Competence Centre on Money, Trade, Finance and Development 1105, Hochschule fuer Technik und Wirtschaft, Berlin.
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