New Mining Taxes?

From Zambian Economist Mon Feb 18 2013, 00:00:00

Finance Minister Alexander Chikwanda recently signalled that Government is considering introducing new "tax measures" in mining :

"...We will introduce measures and relook at the tax system in the mining sector. Our mining sector has not contributed much compared to the rest of the region. So we want to engage local experts and ensure we have the statistics on mineral production and exports, and then we will find modalities to effect new tax measures to increase revenue collection..."

I commend Mr Chikwanda for his honesty that we are losing out. As well as his latest signal that change is on the way. Two additional observations on his statement.

First, the suggestion is interesting - but remains vague. What are these measures? We need details not merely promises of more study. It is not theoretical physics. These are straightforward issues. The obvious option is increasing revenue based taxes e.g windfall taxation or raising mineral royalties perhaps to 10%. Profit taxes do not work. Alternatively explore an infrastructure based tax that can be ring fenced to be spent in mining areas - that would be a win-win proposal for everyone. And it would ease pressure on mining companies for Corporate Social Responsibility projects. Which are mere bribes against citizens demanding higher taxes and better pay.

[view whole blog post ]
 See More    |     Report Abuse


You might also be interested in the following news stories:

Africa:   One Step Forward, Two Steps Back? (news)
allAfrica.com
25 July 2014

While a number of African countries have recently made some progress in improving the quality of life of their people, nearly as many are backsliding, according to the latest United Nations ... [read more]

Central African Republic:   CAR Cease-Fire Implementation Faces Myriad Challenges (news)
Voice of America
24 July 2014

A cease-fire deal agreed upon by warring militias in the Central African Republic is a welcome development for the war-torn country, though Implementing the accord will not be an easy task. [read more]

Kenya:   U.S. Peace Corps Volunteers Withdrawn (news)
Voice of America
25 July 2014

A German female tourist was killed in the Kenyan port city of Mombasa on Thursday in the same area where a Russian visitor was murdered earlier in July by a criminal gang, police sources said. [read more]



blogAfrica is allAfrica.com's platform to help you keep an ear on the African blogosphere. We draw diverse voices from around the world who post regularly and insightfully about African issues. Bloggers, submit your blog's rss-feed!