Q FM Africa's Modern Radio
The Zambia Chamber of Mines (ZCM) has reiterated its advice to government to maintain the Value Added Tax (VAT) as opposed to introducing the Goods and Sales Tax.
ZCM president Goodwell Mateyo says the chamber still holds the view that the current VAT system can be an effective tax if government changes the approach with regards VAT refunds.
Mr. Mateyo states that government can, for example, consider offsetting VAT refunds against other tax liabilities.
Speaking when he made a presentation on the latest ZCM report on the Sales Tax in Lusaka, Mr. Mateyo says government can also start allowing mining companies to defer VAT on imports.
He states that the chamber of mines is also urging government to consider technical solutions such as Invoice matching software and VAT refund forecasting and monitoring system.
And Mr. Mateyo says the chamber is further urging government to maintain the 2018 mining tax regime in the 2020 national budget as a measure to boost production and profit margins for the mines.
He says if government does not maintain the 2018 tax regime, it should consider reducing the Mineral Royalty Tax.