Date: Dec 27, 2018
THE current mining tax dispute between Government and the mining companies is a chance to get back to the negotiating table and at the same time an opportunity to negotiate and formulate a mining tax policy framework that will allow the country to leverage its resource potential to the benefit of all citizens.
Zambia possesses an enviable share of the world’s reserves of minerals.
These minerals, include the most traded commodities on the London Metal Exchange and other valuable minerals e.g. copper, gold, zinc, lead, manganese, cobalt, uranium and iron, gemstones, oil and natural gas that are spread right across the country.
The country is blessed with an abundance of mineral resources, yet it remains poor by most measures.
The mining companies have flourished and have been making millions of dollars in profits over the years and Government has failed to create a policy framework that should allow the country to leverage its resource potential to the benefit of all citizens in line with the nation’s developmental agenda adding value to the local context.
Due to the complexity of the Zambian tax laws and the impact thereof on the industry, it is necessary to have a thorough understanding of not only the tax legislation, but also the specific needs of the Zambian mining industry.
Historically, the performance of the Zambian economy has followed the fortunes of copper mining closely.
During the past five decades, the economy of Zambia has undergone major changes from the nationalisation era to the privatisation and liberalisation of the economy.
