MINING SECTOR TO PAY 1 TRILLION KWACHA EXTRA IN TAXES NEXT YEAR

Zambia looks to benefit an extra at least 1.05 trillion kwacha from mining after adjustments to the sector’s tax regime in the 2012 national budget.

Finance and National Planning Minister, Alexander Chikwanda has projected to raise 981 billion kwacha after increasing the mineral royalty tax percentage.

In his budget speech, Mr Chikwanda announced a raised mineral royalty tax to 6 per cent from 3 and 5 per cent for the base and precious metals respectively.

The Minister also reduced export duty of copper and cobalt concentrates from 15 t0 10 per cent and further extended the measure to include other unprocessed or semi-processed mineral ores with a benefit of 70 billion kwacha.

Mr Chikwanda also removed from the Value Added Tax deferment scheme, copper and cobalt ore exports owing to increased production, a measure, which he hopes will earn government an extra 6.9 billion kwacha in revenue.