The Government has no plans to implement specific regional tax cut incentives despite the much anticipated measure at Selebi Phikwe town.
Minister of Finance and Economic Development Kenneth Matambo told Parliament recently that only Selebi Phikwe, due to its economic situation will get such kind of incentive.
“The only regional specific tax that will be introduced are as part of Selebi-Phikwe Revitalisation Strategy. My ministry in liaison with the Ministry of Investment, Trade and Industry is finalizing an instrument under which Development Approval Orders will be granted to qualifying companies operating in Selebi-Phikwe Economic Diversification Unit Region”, Matambo said.
The copper and nickel mining town economic activity hangs in the balance as a result of the closure of the BCL mine in late 2016. The mine was closed due to fluctuating commodity prices in the global markets.
The mine is yet to identify a suitable buyer following the provisional liquidation and closure of operations by BCL Company with final liquidation expected December should the mine have not located a prospective buyer.
As it stands, tangible results of both economic interventions are yet to be realised for the mining town. Sunday Standard has been informed that under the envisaged Selebi-Phikwe tax incentive, companies that are approved as SPEDU companies will be taxed at a rate of 5 percent for the five years of their operation and at a tax rate of 10 percent thereafter.
