2012 MINES TAX REGIME STILL FRAGILE

Zambia might reverse the hiked mineral royalties tax measures effected in the 2012 national budget.

Mines Minister, Wilbur Simuusa says the rates, which were doubled from 3 per cent could be cut if commodity prices plummet next year.

The Reuters has reported this quoting Mr Simuusa on the sidelines of a mining sector conference in London.

Mr Simuusa has reiterated that the rates will for now remain as stated in Finance Minister, Alexander Chikwanda’s announced budget.

Mr Chikwanda has raised the royalties from 3 to 6 per cent for mineral and base metals in order to bring in badly the needed revenue for increased social spending and farming subsidies.

And the World Bank has said that the policy is unlikely to cripple the industry at current prices but could cause problems if copper prices fall.