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.