Cham­ber of Mines slams pro­posed tax mea­sures

Daily Nation Newspaper - - FRONT PAGE - By AARON CHIYANZO

THE pro­posed tax changes to the min­ing sec­tor an­nounced in the 2019 na­tional bud­get will make Zam­bia un-in­vestable and hurt the econ­omy, the Zam­bia Cham­ber of Mines has warned.

Cham­ber pres­i­dent, Nathan Chishimba said that more tax in­sta­bil­ity, mas­sive in­creases and novel taxes would hurt the min­ing in­dus­try and those who rely on its suc­cess. Mr Chishimba re­it­er­ated that at­tract­ing in­vest­ment was the only way to grow the coun­try's econ­omy and that the base of tax­pay­ers was Zam­bia's route to a pros­per­ous fu­ture. He com­plained that a ten point plan that would have dou­bled cop­per pro­duc­tion and in­crease the rev­enue base of the coun­try which the cham­ber had pre­sented to gov­ern­ment was ig­nored. Mr Chishimba said that the mea­sures that gov­ern­ment had in­tro­duced would have the op­po­site ef­fects in­stead. He pointed out that a num­ber of op­er­a­tions would be pushed into a loss mak­ing po­si­tion and would have to scale back. Mr Chishimba warned that put­ting min­ing com­pa­nies in a loss mak­ing po­si­tion would have dev­as­tat­ing out­comes. "2019 bud­get will break the back of Zam­bia's econ­omy. Pro­posed tax changes will make Zam­bia un- in­vestable. Hav­ing met as an in­dus­try, we are con­vinced that at­tract­ing in­vest­ment is the only way to grow our econ­omy. We had pre­sented a 10 point plan to gov­ern­ment in July which we be­lieve could dou­ble the size of cop­per pro­duc­tion and add a bil­lion dol­lars a year to the econ­omy , un­for­tu­nately was ig­nored," he said. Mr Chishimba claimed that the in­tro­duced higher tax rates would still not lead to higher rev­enue for gov­ern­ment but the op­po­site. He ex­plained that as the in­dus­try pro­duc­tion shrunk, there would be less jobs, less taxes and there­fore less in­come for gov­ern­ment. "Min­eral Roy­alty rate in­creases by be­tween 25% and 67% across the dif­fer­ent price bands, Zam­bia will now once again be an in­ter­na­tional out­lier in the sever­ity of its regime. Sales tax will make banks stop pro­vid­ing fi­nanc­ing to min­ers," he said.

Mr Chishimba

Newspapers in English

Newspapers from Zambia

© PressReader. All rights reserved.