Lusaka, Zambia — MININGREVIEW.COM — 23 May 2008 – Zambia is on course to collect a projected US$415 million (R3.1 billion) from new mining taxes in 2008, following compliance by the major mining companies operating in the country.
So reports Reuters, quoting a senior tax official here, but the news agency points out that this contradicted a statement by a top treasury official earlier in the week.
The new tax regime, which came into effect in Zambia on April 1, increased mineral royalty to 3% from 0.6 %, while corporate tax on miners rose to 30% from 25%. The government also introduced a 15% variable profit tax on taxable income above 8%, and a minimum 25% windfall profit tax.
Reuters quotes Zambia Revenue Authority (ZRA) commissioner-general Chriticles Mwansa as saying that mining companies had complied with the new tax law and had paid the mineral royalties at 3%. He said mining companies had paid the tax authority US$8.4 million (R63 million) in May compared with the US$1.4 million (R11 million) that they used to pay per month before the introduction of the new taxes.
“I am confident that the targeted US$415 million (R3.1 billion) will be collected,” he added. “The compliance levels so far by the mining companies are very encouraging, so we are extremely hopeful that the government will meet the target.”
The first payments for mineral royalty were due on May 14, 2008 following the introduction of new taxes, but the bulk of the revenue will be paid in June when the first returns and payments for company income tax and other taxes are due.
Earlier in the week, Ministry of Finance permanent secretary Emmanuel Ngulube, said the first money of the projected US$415 million (R3.1 billion) this year would start coming in June, and would be affected by lower production due to power outages. He expected the revenue to reduce.