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Harare — Government has increased export tax on unprocessed chrome from 15 percent to 20 percent to encourage value addition on chrome ore and fines.

"I further propose to raise the export tax on chrome ore and fines from 15 percent to 20 percent and the measures take effect from August 1, 2010," said Finance Minister, Tendai Biti in his Mid-term Fiscal Policy Review. Small-scale miners have been exporting raw chrome ore to South Africa, China and Europe.

Under the Short Term Emergency Recovery Programme, the exploitation of chrome was given priority as Zimbabwe has huge reserves of the mineral. Zimbabwe has the world's second largest chrome reserves and the Government is taking advantage of the existing beneficiation facilities to refine all important minerals which include chrome, copper, nickel and iron ore.

Chrome mining is concentrated in Shurugwi, Mutorashanga, Lalapanzi and Guinea Fowl with smelting being done in Kwekwe. Minister Biti also suspended duty on margarine, washing powder, petroleum jelly, bath soap and make up preparation for skin care with effect from August 1.

• [Editor:editor]