Zambia looking to mining laws and taxes

The Michael Sata administration in Zambia is looking into reviewing the country’s mining taxes as the Zambia Revenue Authority (ZRA) did not collect enough tax from mining firms in 2013, the country’s finance minister Alexander Chikwanda has revealed.

Chikwanda urged the administration to review the laws, as mining contributed only 18.8 percent to the country’s total revenues last year. The minister was quoted by Reuters as saying that the contribution of the mining sector is inadequate.

“It is only fit and proper that the country gets optimal revenue from its depleting resources,” Chikwanda said. “There will be an appropriate and opportune time for parliament to review the existing legislation.”

It is alleged that mining companies took advantage of the ZRA’s shortcomings in order to evade tax payments, citing technicalities.

According to the Finance Minister, the loss of tax revenue is affecting the Sata administration’s ability to deliver on development projects for Zambians.

The administration is also planning to revise the country’s Mines and Minerals Development Act, which is aimed at monitoring and regulating the mining sector to accelerate growth and ensure higher benefits from the industry.

According to officials, the revision of the act is also intended to bring the policy in line with international best practices, so that Zambia can continue to be a preferred destination for investment. Significant progress has been made in revising the Mines and Minerals Development Act Number 7 of 2008 that draws on the vision 2030 which provides the blueprint for achieving accelerated growth aimed at raising the standards of the people of Zambia.