Zambian Economist Hakainde Hichilema on Sunday vowed to remove the new mining tax regime. Hichilema says he will build an investor-friendly Zambia and review what he calls the terrible and penal tax if elected on Tuesday. He told the AFP in an interview : Anything that damages industry, that damages growth, we will deal with that. One aspect (that is) unacceptable is the introduction of the mineral royalty at 20 percent...How can any knowledgeable government in todays world impose a tax like that? (Source : AFP ) GRZ has revised the fiscal regime to improve transparency and accountability by eliminating a complex two tier system with a simple final tax based on revenues. The changes are also aimed at increasing the share of mining revenues, which currently stands at just a paltry 7% of total mining export revenue. Zambia is the worlds seventh biggest copper producer. Despite our mineral wealth, we are ranked among the worlds poorest countries due to unfavourable tax arrangements. The country has been waiting for HH to articulate a clear position on mining taxation given its complex links to the current Budget. It seems like his policy is simply appeasement of foreign investors. It also shows that HH has not given much thought to Zambias fiscal position. Reversing the new mining tax is not an option in 2015 and 2016. We shall say more on this issue in due course.
Posted on: Sun, 18 Jan 2015 22:55:42 +0000
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