Taxation of Mining Operations in Tanzania: Balancing Prosperity and Responsibility

Abstract

Tanzania, a land adorned with glittering seams of gold, diamonds, gemstones, and other precious minerals, stands at the crossroads of opportunity. It's mining sector shapes the nation's economy. Therefore, taxation of mining operations in Tanzania represents a pivotal aspect of the nation's economic growth, given the substantial contributions of the mining sector to national revenue, employment generation and overall socioeconomic development. With its vast mineral reserves, Tanzania has attracted significant foreign direct investments (FDIs) in the mining sector over the years. In the context of taxation, the Tanzanian government has pursued various policy frameworks and regulatory mechanisms to ensure the fair and efficient collection of revenues from mining operations. Historically, the taxation regime for mining operations in Tanzania has undergone several revisions, reflecting the evolving priorities, economic conditions and political dynamics of the country. Among of the primary instruments for taxing mining operations in Tanzania is the Income Tax Act, [Cap.332 R.E 2019], Mining Act [Cap.123 R.E 2019] and other laws which provides for the legal framework for licensing, regulation and revenue sharing in the sector. Therefore, this article discusses taxes which are charged on mining operations in Tanzania, particularly the income tax and other taxes. Keywords, Mining Operations 1 , Mineral Rights 2 , Income Tax 3 , and Taxation Regime 4 .