Q FM Africa's Modern Radio
Financial Analyst Mambo Hamaundu says the directive by President Edgar Lungu to Finance and Mines Ministers to effect changes to the 2015 mineral royalty tax is long overdue.
Mr. Hamaundu says many players warned that the fiscal regime which was introduced in the 2015 national budget could be injurious to the mines and the general economic welfare as many people would have lost jobs while some mining firms would have closed.
Mr. Hamaundu notes that it is very important that the issue of mineral royalty is looked at seriously and all the concerns addressed.
He explains that if it is possible, government might as well just consider going back to the 2014 tax regime for the mines while trying to find another taxation system which would be fair to all parties.
Mr. Hamaundu says the 20% mineral royalty tax would have killed most of the mining entities thus it is important that some changes are made to it.
He further states that going forward; the taxation system impasse should be resolved so that stability and confidence is restored within the economy as mines contribute a significant portion towards the country’s foreign exchange.