Small and artisanal miners need tailor-made tax regime, says think-tank

THE Policy Monitoring and Research Centre (PMRC) expects Government in the 2023 national budget to propose a tailor-made tax regime targeted at the small and artisanal miners which will encourage their formalisation.

There has been growth in the artisanal and small-scale mining sectors which will require concerted effort to promote increased productivity, value addition and diversification within them, according to PMRC acting Executive Director Sydney Mwamba.

Mr Mwamba observed in the PMRC budget expectations that the mining sector had remained vulnerable to volatile commodity prices and was characterised by low productivity despite being the main source of the country’s export earnings.

He said Government must therefore look at progressive measures to stimulate production in the sector.

“PMRC also expects the 2023 national budget to include well targeted fiscal incentives for small-scale mining operators and them to finance and capacity building, which are key for the growth of the sector and will eventually improve their contribution to increased productivity and diversification in the sector,” Mr Mwamba said.

Mr Mwamba stated that value addition in the sector would be a key step towards increasing foreign exchange earnings.

He urged Government to consider developing a longterm, stable and consistent mining tax regime that would encourage the expansion of mineral production and exploitation for already existing mines as well as the opening up of new mines.

In the 2022 national budget presentation, the Government outlined its desire to increase copper production to three million metric tonnes in the next 10 years.

Under manufacturing, Mr Mwamba said PMRC expected an update on the impact of the incentives introduced in the 2022 National Budget to promote the uptake of investment in the industrial yards and multi-facility economic zones.

He stated that their performance must be reviewed, lessons established and a strategic course forward determined.

“PMRC expects the national budget to have an allocation dedicated to supporting this initiative as the African Continental Free Trade Area (AfCFTA) continues to hold much potential to aid the growth of Zambia’s trade in the medium to long term,” Mr Mwamba said.

The AfCFTA national implementation plan was released in 2021.