Zambia – Zambia has taken the industry’s complaints regarding its increase in mining taxes seriously. To avoid mining closures and job losses, the government has proposed reducing the Zambia mining tax to 9% for both open-pit and underground mines.
Its original proposal saw an increase in open cast mining taxes from 6% to 20% and from 6% to 8% in underground mines.
The Zambia Chamber of Mines has welcomed the directive by the Republican President, His Excellency, Mr Edgar Chagwa Lungu, noting it was expecting an announcement by 8 April 2015.
“We note that from inception the Republican President has been committed to fostering the sustainable operations of the mining companies, as seen through his resolve to guide the line ministries, including the Zambia Revenue Authority on the issue of Value Added Tax Rule 18(b).This will surely help to continue contributing to job creation and poverty alleviation,” says the Zambian Chamber.
The mining industry represents more than 86% of Zambia’s Foreign Direct Investment. This investment is critical for increased capacity and production levels in the mining industry, and is fundamental to the development of growing economies such as Zambia.
The Zambia Chamber of Mines is committed to working with all stakeholders to put in place a tax system that will:
- Increase revenue to the government for social and economic development on a sustainable basis,
- Encourage investment in the mining sector for sustainability of the industry and security of direct, indirect and induced jobs,
- Be predictable and stable to enable long term planning by the mine operators and potential new entrants into the industry,
- Encourage efficiency in the mines by optimising cost profiles.
The new proposed tax will be presented to Parliament on Monday.