In an article on IOL Business Report, Peter Leon a partner at Webber Wentzel, commented on the African National Congress’s proposed resource rent tax of 50 percent on mining companies.
Leon commented that mining was not a “normal industry” and that long lead times were necessary before investments became profitable due to the high risk and capital-intensive nature of the industry.
He went on to say that that while the proposal was understandable, it would require maximising private sector investments and if there was a fiscal burden investment would “simply dry up”. He stated that balance was essential between development, investment and productivity.
- IOL Business Report