ActionAid Zambia guides govt on Mining Tax Regime

ActionAid Zambia Country Director Nalucha Ziba

ActionAid Zambia hopes that government will trade cautiously on Zambia’s mining tax regime.

Government recently proposed changes to the mining tax regime and these changes will see a varied mineral royalty rate for copper based on the prevailing copper prices.

This will include a mineral royalty tax rate of 4% when copper price is less that US$4,500, 5% when the price of copper is between US$4,500 and US$6,000 and 6% when copper price is above US$6,000.

But ActionAid Country Director Nalucha Ziba says what is necessary regarding the proposed new changes is to ensure that there is a win – win situation.

Ms Ziba says government should be able to collect adequate tax revenue without negative implications for mining investments.

She says while a Mineral Royalty Tax is revenue base tax, and with challenges of profit taxation such mines can take several years to become profitable and pay taxes based on profits.