New Mining Taxes?

From Zambian Economist Mon Feb 18 2013, 05:00:00

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:

South Africa:   Immunity, or Not, What is Happening With Grace Mugabe? (news)
allAfrica.com
18 August 2017

The Department of International Relations and Cooperation (Dirco) has reportedly denied that Zimbabwean First Lady Grace Mugabe will be granted diplomatic immunity despite reports to the ... [read more]

Congo-Kinshasa:   Ituri - 40 personnes meurent dans un √©boulement de terrain au bord du lac Albert (news)
Le Potentiel
18 August 2017

Les catastrophes dues aux affaissements des terres sont fréquentes dans cette province de l'Est de la RDC. M. Pacifique Keta, vice-gouverneur de l'Ituri, a fait savoir hier jeudi 17 août ... [read more]

Sierra Leone:   Les lacunes des politiques de logement responsables des nombreuses victimes de la coul√©e de boue (press release)
Amnesty International
17 August 2017

Les conséquences du glissement de terrain survenu en Sierra Leone, dans lequel plus de 3 000 personnes ont perdu leur logement, illustrent cruellement le coût humain de ... [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!