An urgent application has been filed seeking suspension of SI 26/2021 enacted by the government recently.
Dumisani Dube represented by Zimbabwe Lawyers for Human Rights, legal practitioner Tanaka Muganyi, has dragged the state to court, arguing that exemption of Great Dyke Investments Pvt Ltd from paying taxes is unconstitutional.
The lawyer says, the exemption violates the right to equal protection of the law.
He also said SI 26/2020 also violates section 298 (1) of Constitution on principles of public finance management, sec 298(1)(b)(i) on burden taxation that must be shared equally.
Meanwhile, this comes after Great Dyke Investments (GDI), which is developing a platinum mining project in Darwendale, Mashonaland West province was granted a five-year tax exemption by the government.
The mining entity is a joint venture between Russia’s Vi Holdings and Zimbabwe’s Landela Mining Venture (Pvt) Limited and is investing US$3 billion into the platinum project.
According to a Government Gazette Extraordinary dated January 27, 2021, Finance and Economic Development Minister Professor Mthuli Ncube granted the exemption in terms of the Income Tax Act (Chapter 23:06).
“This notice may be cited as the Income Tax (exemption from income tax) (Great Dyke Investments (Private) Limited notice, 2021.
“The notice is deemed to have come into effect from the 1st of January, 2020.
“The receipts and accruals of Great Dyke Investments (Private) Limited, as per the Special Mining Lease Agreement signed between the Government of Zimbabwe and Great Dyke Investments (Private) Limited are approved,” reads part of the notice.
Apparently, commodities baron Kuda Tagwirei’s Landela Mining Ventures now owns 50% of GDI.
Tagwirei who also owns Sakunda Petroleum is believed to be President Emmerson Mnangagwa’s front man.