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The Zambia Chamber of Mines Chief Executive Officer Sokwani said that Zambia is one of the only two countries having the highest effective tax rate for mining in Africa. He wanted the tax regime to be reviewed to make mining attractive to investors
The Zambia Chamber of Mines Chief Executive Officer Sokwani said that Zambia is one of the only two countries having the highest effective tax rate for mining in Africa. He wanted the tax regime to be reviewed to make mining attractive to investors.
Mr. Chilembo pointed out that what was given to the mining sector in the 2022 budget are not exemptions but tax adjustments. These were necessary to make the country’s mining sector more competitive. The Democratic Republic of Congo (DRC) has the highest tax on copper mining in Africa.
There are calls for increased taxation in the mining sector in the 2023 Budget as against relaxations in the current 2022 national budget. The Chamber of Mines highlighted that third-party studies in 2021 put Zambia’s taxation on the old Copperbelt at 77 percent and 57 percent for the new Copperbelt in the northwest. The rest of the world’s taxation is averaging much lower, making investments in Zambia uncompetitive.
Mr. Chilembo said that while things improved within the 2022 budget, there is a need for the 2023 fiscal year to be more enabling. The budget will be presented this coming Friday, which is eagerly awaited by the business community.
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The country’s half-year copper production figures fell by a total of 7.17 percent due to operational challenges, such as heavy rains in North Western Province and floods in Kwazulu Natal of South Africa. Those natural calamities have challenged the mining sector considerably.
