Zambia to beat 2010 revenue collection target

Zambia’s 2010 revenue collection will exceed the target by 9 percent due to increased tax collections from mining companies and domestic tax arears, the minister of finance said.

Finance Minister Situmbeko Musokotwane said in a letter to the International Monetary Fund (IMF) seen by Reuters on Thursday domestic revenue had performed well.

“This performance is attributed to higher collections under income and value added taxes arising from tax arrears and an increase in tax collections from mining companies,” Musokotwane said.

Musokotwane said Zambia, Africa’s largest copper producer, believed the current mining tax regime was fair and the government would focus on implementing it fully.

Zambia reached a deal with foreign mining companies whose long-term agreements the government had cancelled in 2008 to introduce higher taxes, the finance said in November.

Reuters.

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