Q FM Africa's Modern Radio
The Chamber of Mines of Zambia says the non-payment of withheld VAT refunds by government is already having effects on the mining industry and that in the medium to long term this will have a negative impact on production and the cost of production.
Government has withheld over K4 billion in tax refunds to exporters mostly mining companies until they produce the necessary export documentation in accordance with VAT Rule 18 .
The Chamber of Mines however says cash flows have been seriously constrained and that to keep operations going undesirable actions have been taken such as suspension of capital projects, deferment of capital projects ,cancellation of projects, slowing down of production levels and payment of suppliers being pushed back by 90 days or more among other measures.
In a statement made available to QFM News,the Chamber of Mines of Zambia says the effects of these actions are already being felt, and that in the long term suppliers of goods and services to the mining industry will have no business and there will be overall reduced revenue collection by the Zambia Revenue Authority.
It has since appealed that the VAT Rule 18 be looked at urgently and resolved and the VAT refunds made to all exporters so that progress on the path of increasing mining and manufacturing production to sustain and continue to create jobs.
The Chamber of Mines notes that Zambia’s mining industry will continue to be the engine of the economy for a long time to come, hence the need to nurture the industry so that it continues to generate revenues required to diversify the economy.