CTPD HAS NOTES THAT THE PUBLIC DISCONTENT WITH THE MINING TAX REGIME WILL ONLY BE ALLEVIATED IF THE CULTURE OF SECRECY AROUND MINING GIVES WAY TO GREATER TRANSPARENCY IN ZAMBIA

CENTRE FOR TRADE POLICY AND DEVELOPMENT (CTPD) HAS NOTED THAT THE PUBLIC DISCONTENT WITH THE MINING TAX REGIME WILL ONLY BE ALLEVIATED IF THE CULTURE OF SECRECY AROUND MINING GIVES WAY TO GREATER TRANSPARENCY.

ACCORDING TO ITS RECOMMENDATION TITLED “A FOOLS PARADISE, ZAMBIA’S MINING TAX REGIME” CTPD SAYS CURRENT THE COUNTRY IS NOT GETTING WHAT IT IS SUPPOSE TO GET IN TERMS OF TAXES HENCE IT IS IMPORTANT THAT COMMUNITIES WHO BEAR THE BRUNT OF MINING’S SOCIAL AND ENVIRONMENTAL IMPACTS GET A FAIRER DISTRIBUTION OF MINERAL ROYALTIES.

IT HAS STATED THAT MINING TAX REGIME NEEDS TO BE TIGHTENED IN OTHER WAYS ESPECIALLY BY NO LONGER ALLOWING MINING COMPANIES TO OFFSET HEDGING TRANSACTIONS AGAINST INCOME.

CTPD HAS NOTED THAT GOVERNMENT ALLOWED HUNDREDS OF BILLIONS OF KWACHA IN TAX REVENUE TO BE FOREGONE BY REPEALING THE WINDFALL TAX IN 2009, ADDING THAT A MODIFIED VERSION OF THE REVENUE BASED WINDFALL-BASED TAX SHOULD BE RE-INTRODUCED.

IT SAYS IT IS HIGH TIME THE GOVERNMENT RAISED MORE MINING TAX REVENUE AND INVESTED IT IN ECONOMIC INFRASTRUCTURE SO THAT ZAMBIANS CAN START TO TRULY AND SUSTAINABLY BENEFIT FROM THEIR COUNTRY’S RESOURCE WEALTH.

CTPD HAS RECOMMENDED THAT GOVERNMENT SHOULD FURTHER INVEST IN DEVELOPING THE ZAMBIA REVENUE AUTHORITY CAPACITY TO COLLECT TAXES AND MONITOR AND AUDIT MINING COMPANIES.

published by augustine