Definition 

Mineral tax is charged under section 9 of the Finance (Supplementary Provisions) Statute of the Central Province No. 03 of 1996.

Mineral tax should charged on

– Where any person has been granted the right to mine, prospect for, process collect or remove any materials from land situated within the province under the authority of a license or permit issued under the Mines and Minerals Law.

Effective from

–  1st April, 2014

Mineral Tax Rate

– 0.5% on total turnover

Gazette

– 1851/6, 24.02.2014

Date of Payment of the tax

• • • 1st Quarter – From 1st of January to 31st of March
    • 2nd Quarter – From 1st of April to 30th of June
    • 3rd Quarter – From 1st of July to 30th of September
    • 4th Quarter – From 1st of October to 31st of December

Penalty to be imposed upon default of payment of Mineral Tax

– 10% for the 1st month and 2% on every succeeding month

– Maximum penalty will be 50% of the total tax

Payment of Mineral Tax

 – Mineral Tax can be paid at any branch of the People’s Bank situated within the Central Province

 – The taxpayer should complete the required pay-in slips and make the payment through the bank

 – Two copies of the pay-in slip will be issued by the bank, and one copy should be forwarded to the Department together with the Mineral Tax           return

Furnishing the Mineral Tax Returns

 – At the end of each quarter, Mineral Tax returns and pay-in slips will be sent to the taxpayer by post

 – The taxpayer is required to provide the information requested in the return and submit it to the Department together with the relevant bank           pay-in slip within 15 days after the expiry of the quarter

Penalty for Failure to Furnish Mineral Tax Returns

– Under Section 34(a) of the Finance Statute No. 17 of 1990 of the Central Province, a person who fails to furnish the required Mineral Tax return    may be liable to a fine not exceeding Rs. 50,000, imprisonment for a period not exceeding six months, or both the fine and imprisonment