Broadening Tax Base: Gov't Moves To Formalise Sand, Gravel Sectors

 The Minister of Mines, Industries and Technological Development signed a convention February 9, to facilitate collection of taxes on exploitation of development minerals.

Government has signed a public-private partnership agreement with Migration SA that would facilitate the collection of taxes on the exploitation of non-transferable mineral substances such as sand, gravel, granite, laterite and pozzolan.

The contract was signed on Friday February 9 by the Minister of Mines, Industries and Technological Development, Ernest Gbwaboubou and Hon Issac Ngahane, Chief Executive Officer of Migration SA. Minister Gbwaboubou said the company will be in charge of formalization and standardization of the mineral sector, lifting it out of the informal to the formal.

According to Simon Essi, Director General of Migration SA, 90% of the actors in the sector are operating informally. This, he said, implies that the workers, especially those who dive into the rivers to exploit sand, are exposed to all sorts of insecurities; transactions are carried out in a haphazard manner as no specific measurements and quality standards had been laid down.

He also said government incurs losses of as much as FCFA 800 billion annually in the informal exploitation of development minerals. “Formalising and standardising the sector will prevent these losses and protect employees and citizens. You won’t be hearing that buildings are collapsing here and there if the quality of natural materials used were checked. We believe this agreement is a step in the right direction,” Simon Essi said.

Just before the contract...