Zambia to change mining tax, lift underground royalty to 8%
LUSAKA – Zambia will increase underground mining royalties to 8% from 6% as part of an effort to revamp the industry's tax system, Finance Minister Alexander Chikwanda said in his 2015 budget speech on Friday.
The new system he outlined aims to collect revenue from the industry at different stages of the production pipeline by introducing a 30% corporate processing and smelting tax.
Another 30% tax will be applied to income earned from "tolling", industry-speak for an agreement to process another producers raw materials.
Open cast mining operations in the southern African nation will now be subjected to a "20% mineral royalty ... as a final tax," Chikwanda said.
The tax system in Africa's second largest copper producer has been in the spotlight amid a simmering row over VAT refunds.
Zambia has been withholding $600-million in VAT refunds owed to mining firms after companies failed to produce import certificates from destination countries.
The finance ministry has since said it plans to waive the requirement because it is impractical, but no refunds have been made yet.
Chikwanda said the government wanted "an amicable resolution" to the VAT spat.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation