Gov’t to scrap stability agreements within the minerals sector

Minister designate for lands and Natural Resources, John Peter Amewu, has said that stability agreements would be scrapped if his nomination is approved by Parliament.

Responding to questions by the appointment committee on Tuesday, January 31, Mr. Amewu said removing stability agreements in the mining and oil sectors will increase revenue accrued from there.

“There are clauses in the contracts entered into by government and international companies in those industries which seek to protect the investment of the foreign entity. These sometimes come in the form of tax waivers to encourage more foreign investment. Such agreements have been criticized by stakeholders as they deprive the country of needed revenue,” he said.

He also revealed that government will review the taxes on imported wood. He believes such taxes prohibit the country from sourcing quality wood from its neighbors to feed the furniture industry.