Dar es Salaam. In a significant move to alleviate the financial burdens faced by small-scale gold miners, the Tanzanian government, through the Ministry of Minerals, is undertaking a comprehensive review of various fees and taxes imposed on gold mining and processing.
This initiative was revealed in Dodoma by the Minerals Minister, Mr Anthony Mavunde on Friday, February 7, 2025, who emphasized that addressing these systemic challenges is crucial for the growth and sustainability of this vital sector.
Minister Mavunde was responding to a question from Busanda MP, Mr Tumaini Magessa, during a Question and Answer session in Parliament, where the legislator wanted to know when the government would review the existing fees that burden small-scale miners in the gold mining and processing chain.
Mr Mavunde’s response highlighted the government’s proactive approach under the Business Environment Improvement Strategy, which has already identified 66 different fees imposed by local authorities on mining activities.
Among these fees are Inspection fees, Value Added Tax (VAT), Transport fees and Residual Waste Fees.
By outlining these specific fees, the Minister emphasized the need for a thorough evaluation of their impact on small miners, many of whom operate on thin margins.
“A draft proposal for improvements is currently under review,” underscored Mr Mavunde.
He went on to add: “This proposal is vital for establishing more favorable fees that align with the realities of small-scale mining operations, ultimately aimed at reducing financial pressures.”
Collaborative efforts and stakeholder engagement
In August 2024, the Ministry convened a meeting in Singida that included various stakeholders, such as the President’s Office for Regional Administration and Local Government, the Ministry of Finance, the Mining Commission, State Mining Corporation (STAMICO), and several district councils.
This multi-stakeholder engagement is critical, as it allows for a comprehensive understanding of the local challenges faced by miners and promotes collaborative solutions.
Broader tax reform initiatives
In addition to the fee review, Minister Mavunde mentioned the government’s ongoing efforts to reform the overall tax system through the Tax Reform Commission established by President Samia Suluhu Hassan.
This commission is expected to deliver recommendations that specifically address the tax challenges faced by small-scale gold miners and the mining sector at large.
The interplay between these reforms and the proposed fee adjustments could lead to a more streamlined and efficient tax environment, potentially attracting greater investment into the sector and enhancing its economic contributions.
Implications for the economy
These initiatives reflect the government’s commitment to strengthening the small-scale mining sector, recognizing its significance in terms of employment, income generation, and local economic development.
By reducing the financial burdens on small miners, the government aims to stimulate growth, promote sustainability, and ultimately enhance the sector’s overall contribution to the national economy.
These actions not only highlight the importance of small-scale mining in the national economic landscape but also represent a hopeful path toward increased investment and growth within this vital industry.
Context and importance
Small-scale gold mining plays a pivotal role in Tanzania’s economy, providing livelihoods for thousands and contributing to local and national revenues.
However, the sector has long been plagued by a complex and often burdensome tax structure that discourages investment and innovation.
By reassessing these fees, the government aims to foster a more supportive environment for small miners, thereby enhancing their operational viability and overall contribution to the economy.
