Tanzania is planning a tax legislation amendment to grant amnesty on interest and penalties for the next six months in a move that may have a significant impact on gold miner Acacia Mining PLC, Reuters reported June 15, citing Finance Minister Philip Mpango.
Acacia Mining's share price was up by more than 5% as of same-day closing on the London Stock Exchange. According to the government, the company owes Tanzania about US$190 billion in unpaid taxes along with interest and penalties.
The amnesty, which will be in effect from July 1 to the end of 2018, aims to bring more entities into the tax net and eventually boost state revenues. The potential impact on Acacia will not be immediately clear, according to Reuters.
The tax dispute saw majority owner Barrick Gold Corp. create an operating entity with the government to manage the Bulyanhulu, Buzwagi and North Mara gold projects as well as any future operations in the country.
Tanzania has been tightening its laws related to mining operations, targeting a larger share of profits.