New Export Tax on Chrome Ore Intended to Resurrect the Ferrochrome Industry, but challenges prevail
By Prenisha Govender, Associate, Tax, and Angelo Tzarevski, Senior Associate, Competition & Antitrust, Baker McKenzie Johannesburg
The South African Government recently approved a tax on South Africa’s exported chrome, although the tax percentage and further details are still to be announced.
The ferrochrome ore industry has been severely threatened in recent years, mostly due to increases in electricity tariffs for heavy use industries, which, combined with the unreliable supply of electricity in South Africa, have crippled the industry to such an extent that reportedly 40% of the country’s ferrochrome mines have been unable to continue production.
Some industry stakeholders have suggested that a special electricity tariff would be a better way to support the ailing industry, stating...