Government has been silent about a proposed export levy on chrome ore since hatching the idea in October last year.
According to proponents of the levy, making chrome ore more expensive for Chinese ferrochrome producers will benefit the local ferrochrome sector, which is struggling to make money owing to Eskom’s prohibitive, above-inflation energy tariff increases.
The chrome ore industry, through ChromeSA, has hit back forcibly. It first described the proposal as “egregious” but failed to win exemption from the Competition Commission that would have enabled it to discuss alternatives to the export tax.
All eyes now fall on the country’s medium-term budget policy statement, which has been tabled by newly appointed finance minister Enoch Godongwana for 4 November. The hope is that Godongwana provides more clarity, although ChromeSA is hoping it can yet have its voice heard.
David Kovarsky, spokesman for ChromeSA, answered questions posed by finweek on where a chrome ore tax would leave SA at a time when commodity prices were high-flying.
What is ChromeSA and what’s the beef with government?
This story is from the 8 October 2021 edition of Finweek English.
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This story is from the 8 October 2021 edition of Finweek English.
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