* To keep current rate of 37.5 pct, add surcharge
* Says reviews due to concerns from industry
WINDHOEK Aug 17 Namibia has decided not to go
ahead with its plan to raise the mining tax for companies in the
non-diamond sector to 44 percent after the industry expressed
concerns, the finance ministry said on Wednesday.
Instead it will stick with the current rate of 37.5 percent
and proposed a formula-based surcharge to get extra revenues
when the economy is doing comparatively well.
Namibia had proposed to hike the tax last month to boost
The ministry said it proposed that the cabinet review some
of the planned tax measures over which major concerns had been
"The proposed 44 percent corporate income tax for
non-diamond mining sector is done away with," the ministry said
in a statement.
"Instead, the current rate of 37.5 percent to operate in
conjunction with a formula-based surcharge to capture additional
mining revenue during better economic periods is proposed."
Namibia is one of the world's largest producers of diamonds
and has deposits of uranium. Foreign firms are exploring in the
southwest African country for gold, lead, zinc and iron ore.
Rio Tinto and Australian miner Paladin Energy are
the current uranium producers in Namibia.
(Reporting by Servaas van den Bosch,; Writing by Olivia
Kumwenda; Editing by Anthony Barker)