Mining companies start paying far less in taxes due to poor policies

Kansanshi and Chilubuluma Copper mines last week Friday paid far less in government tax revenue than what they have always been paying due to the loopholes they have already discovered in the newly introduced mining tax regime, according to Ministry of Finance and Zambia Revenue Authority (ZRA) sources

According to the sources, the newly introduced mining tax regime has a lot of loops for those involved in underground mining or both underground and open pity mines.

“Consequently the payments from Kansanshi Copper Mines and Chilubuluma mines are lower than what they used to pay in the last regime. So far the final mineral royalty at 20% they are paying is lower than the corporate income tax at 30% and mineral royalty at 6%. We challenge Finance Minister Alexander Chikwanda and Berlin Msiska to tell the nation why this is the case. We know their answer will be that they cannot discuss taxpayers’ tax affair because of confidentiality issues. At least they can be honest and truthful to Edgar Lungu,” revealed the sources.

And a number of mining companies are withholding billions of US dollars of investment owing to the new tax regime introduced by the PF government.

 

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