Wed, 15 Mar 2017 12:25:44 +0000
By BUUMBA CHIMBULU
ZAMBIA has one of the highest mining tax rates in Africa compared to neighbouring countries such as the Democratic Republic of Congo (DRC), says the Zambia Chamber of Mines (ZCM).
In an interview with the Daily Nation, ZCM Chief Executive Officer Talent Ng’andwe said the mining sector in Zambia had been hit with high taxation rate which hampered the industry from growing.
“What we have come to understand from the public is that they think there is only one tax that applies to the sector, but if you put all the taxes together and come up with an effective tax rate, it is very high compared to the World standards.
“Even DRC cannot be compared to effective tax rates in Zambia. The mining sector is used to dealing with the mining cost profiles, so we are trying by all means to cut on costs to ensure that we stay afloat in this challenging environment,” he said.
Mr Ng’andwe, however, said the industry was happy that Government was responding to such concerns as evidenced by the reversal of the mineral royalty tax to a sliding scale, which had since benefited both the sector and Government.