South African mining tax in the 1990s

This paper reviews the current mining taxes in South Africa, discussing the recommendations of the Mantis Technical Committee, the measures already implemented, and the future outlook. It is concluded that the tax burden imposed on individuals and on the corporate sector should be reduced, and that the taxation of al economic sectors should be neutral. The reforms implemented in 1989 and 1990 are expected to continue, and it is thought that, if the State commits itself to tax neutrality and reduces the ordinary rate of company tax to 40 per cent, the rate of mining taxes will also be lower. Ring-fencing is expected to be reduced further and the rules for capital safe-havens to be refined.