PMRC welcomes revised tax regime

PMRC Executive Director Bernadette Deka

Policy Monitoring and Research Centre (PMRC) has welcomed the changes to the 2015 Mining Tax regime announced by Cabinet saying this will make the mining sector to remain stable and sustainable.

PMRC Executive Director Bernadette Deka tells QTV News in a statement that an analysis of the Revised Mining Tax Regime reveals that the Government has taken steps to ensure that the mining sector remains stable and sustainable.

Ms Deka says this move will ensure that many jobs are saved and that mining operations are also sustained.

She says the introduction of a mining tax on precious metals and gemstone shows commitment towards diversification away from copper.

She notes that in the short term the reduction and suspension of some of the previous taxes will lead to a loss in revenue; however the losses in revenue will be offset by the economic contribution of the many jobs to be saved as well as an enabling environment that will encourage medium to long term investments in the sector.

Ms Deka explains that the alignment of taxes to prevailing copper prices will see Zambia benefit in periods of high copper prices while sustaining the industry in periods of low copper prices.

She says the center reiterates the need for the Government to continue on its path to reform the tax regime so that it remains stable and predictable in order to encourage further inflow of Foreign Direct Investment (FDI).