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Congo’s Government Drops VAT on Imports for Mining Companies

  • Fall in copper price cuts mining companies’ operating margins
  • Legislative hurdles prevented scrapping VAT on imports earlier
Updated on

Democratic Republic Congo will suspend value-added tax on imports for mining companies to ease operating conditions for struggling miners, Finance Minister Henri Yav Mulang said.

In April, the government ordered the central bank to temporarily stop reimbursing VAT in order to reduce pressure on the domestic currency. That suspension remains in force and the country has now agreed to halt the collection of VAT on imports in the mining industry for 12 months to prevent tax arrears owed by the government, currently estimated at $750 million, from increasing further, Mulang said Thursday.