Zam­bia cham­ber of mines op­poses pro­posed min­ing tax regime

Zambian Business Times - - MINING -

“Hav­ing met as an in­dus­try, we are con­vinced that at­tract­ing in­vest­ment is the only way to grow our econ­omy, and grow­ing our econ­omy – and the base of tax­pay­ers – is Zam­bia’s route to a pros­per­ous fu­ture. To that end, we had a 10-point plan which we took to Gov­ern­ment in July, in which we be­lieved we could dou­ble the size of cop­per pro­duc­tion, and add a bil­lion dol­lars a year of fis­cal rev­enue, over the next six years,” Mr Chishimba said.

“Un­for­tu­nately, our plan has been ig­nored. In­stead, the raft of mea­sures in­tro­duced will have ex­actly the op­po­site ef­fect. A num­ber of op­er­a­tions will be pushed into loss-mak­ing po­si­tions and will likely have to scale back. Those al­ready mak­ing losses will be pushed fur­ther into the red. And some of our mem­bers have had to im­me­di­ately put on hold their ex­pan­sion plans, which is the lifeblood of fu­ture pro­duc­tion. Let us be clear, these higher tax rates will not re­sult in more tax rev­enue. Quite the op­po­site. As in­dus­try pro­duc­tion shrinks through the im­pact, there will be less jobs, less taxes and as a re­sult there will be less in the gov­ern­ment’s bank ac­count for many years to come.”

Amongst the many changes, a few were sin­gled out as being par­tic­u­larly harm­ful. These in­cluded:

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