.gif)
Fiji's Interim Government has removed tax measures imposed on Vatukoula Gold Mines Limited to reduce overdue taxes owed by the company.
The Government had imposed tax measures such as a 25 per cent levy on gross gold proceeds and holding back of VAT refunds to reduce tax liabilities.
Interim Attorney-General Aiyaz Sayed-Khaiyum said the measures "have assisted immensely in reducing the tax liabilities.
“Given this reduction and to assist this important industry, FIRCA and the company have mutually agreed to remove these measures.”
Emperor Gold Mine had enjoyed a number of concessions granted to it in the 1970s by the Alliance Government under the Vatukoula Tax Agreement (VTA), which expired about three to four years ago.
Sayed-Khaiyum said the Vatukoula Gold Mine currently continued to enjoy various concessions as provided for under the Income Tax Act and the Customs Act.
South Africa’'s Mining Weekly.com reported that Vatukoula Gold Mines, formerly River Diamonds, had reached an agreement with the Ministry of Finance and National Planning to grant “key concessions and exemptions” for the Vatukoula mine.
According to the website, the Government had also granted an exemption from fiscal and value-added tax payable on fuel used in power generation at the mine.
It reported that this agreement would provide additional cash flow, which would be reinvested in capital projects and in turn lower the company’s fuel costs.
“These effects, together with the recent strengthening of the gold price and the deflation of diesel prices provide Vatukoula with a unique opportunity to maximise the revenue from its gold resources,” the company reported.
