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The ANC has come out in support of a super-tax on mining profits in South Africa. There are a number of problems with this proposal, not least of which is the negative effect such a tax will have on jobs in the fragile mining sector. The ANC should explain why this is a good idea to every person who is set to lose their job because of this super-tax.
A super-tax on profits and on the sale of mining rights would be completely reckless. It could further damage an already struggling mining industry and cost us thousands of jobs.
There are also other problems with this proposal. A super-tax creates the counter-productive incentive for mines to under-report profits, and a tax on mineral rights sales disincentivises initial investment in mines.
We need proposals that will attract investment and create jobs so that everyone can share in the wealth of our mineral deposits. A super-tax only kills jobs and investment. The Democratic Alliance (DA) therefore does not support the implementation of such a tax. Even the debate itself is discouraging investment at the expense of invaluable jobs. We should rather focus on policies that make our mining and beneficiation industries more competitive.
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