Tax Policy Measures (2025)
Imported Beverages
- Government to complete the implementation of the outstanding measures in the 2023 and 2024 Finance Acts, including, configuring excise duties on imported alcoholic beverages, cigarettes and other excisable goods in the ASYCUDA and the Minimum Alternate Tax (MAT) in the Integrated Tax Administration System (ITAS)
- Amend the Income Tax Act, 2000, to extend the Minimum Alternate Tax (MAT) to all sectors, including mining.
- Sustain the implementation of the revised full pass through the petroleum pricing formula.
- Review sectoral investment agreements with a view to introducing sunset clauses for the reduced corporate tax rates granted to existing businesses beginning 2025.
- Cease the practice of granting reduced corporate income tax rates for all new investments and reduced withholding tax rates for all suppliers.
- Continue to rationalize duty and tax exemptions by implementing the Duty and Tax Exemptions Act, 2023.
- Effective 2025, enforces the full implementation of the Extractive Industries Revenue Act (EIRA), 2018, and avoid negotiating new fiscal terms for mining projects outside of the EIRA parameters.
- Implement a Safe Harbors Framework for establishing the prices of all minerals, beginning with iron ore in 2025.
- Implement an ad valorem export duty on the export value of timber and timber products in addition to the current fixed charge, which will be retained as a minimum; and Introduce royalty on the export of dimension stones which had for long been exported as samples with no revenue accruing to Government.
18-11-2024
