Improving South Africa’s Mining Revenues and Transparency
Report for Economic Justice Network of FOCCISA, South Africa (October 2015)
Taxes from mining contribute significantly to South Africa’s economy. Yet the country’s mining sector is insufficiently transparent while companies’ use of tax havens increases the risk of illegal tax evasion and tax avoidance. Together with generous tax incentives given to mining companies, the effect is to reduce revenues to the state. There is a growing sense in South Africa that the minerals in the ground belong to the people and that they should contribute even more to national economic development. This briefing suggests that South Africa could and should raise more revenue from mining by taking action nationally and internationally to review its tax policies and help break open the financial secrecy of tax havens.