Zambia’s Cabinet yesterday announced new changes to the controversial mining tax, slashing royalties for open cast and underground mining down to 9%.
Under the previous government of President Michael Sata, royalties had been bumped up to 20%, sending chills across the investment community as many multinational mining companies threatened to shut down operations.
Shortly after winning last January’s election, however President Edgar Lungu suspended the controversial tax pending the new rules which were proposed yesterday.
The suggestions will still await the approval of parliament with the date of effect set for July, should parliament go ahead with the proposals.
The measures approved by cabinet include the following:
Zambia Revenue Authority will introduce stringent enforcement mechanisms to effectively monitor mining activities and ensure greater transparency among mining companies when reporting revenue and expenditure.
According to a press release, “Cabinet has stressed that the approved mining taxation regime will bring about the desired stability, predictability, consistency and transparency in the mining sector.”
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