Zambia mining tax: digging a hole?
Zambia’s government is hoping a new mining tax will add an extra $90m a year to its coffers. But the country’s industry body warns of deleterious effects
Multinational mining companies operating in Zambia — including from SA, Switzerland, Australia, Brazil, Canada, England and China — have complained about the government’s new mining tax regime, saying it will increase costs and make the country "uninvestable". In her 2019 budget presentation in September, finance minister Margaret Mwanakatwe announced a 1.5 percentage point increase on all mining royalties from 6%, and the introduction of a 10% royalty rate that will apply when copper prices rise above $7,500 a ton. She said the increased revenue collection from mining — expected to rise from $250m to $340m — would benefit Zambians, who have long felt that they do not get a fair share of the country’s mineral wealth. But the move has met resistance, with industry body the Zambia Chamber of Mines (ZCM) saying after an emergency meeting with its members on October 5 that the government had introduced "a budget that would break the back of Zambia’s economy and a tax change that would m...
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