Mining Sector welcomes directive by Republican President to change the 2015 Mining Fiscal Regime
The Zambia Chamber of Mines, a body representing mining and allied industries in Zambia has welcomed the directive by the Republican President, His Excellency, Mr Edgar Chagwa Lungu to the Ministers of Finance and Mines, Energy and Water Development to effect changes to the 2015 Mining Tax Regime by 8th April 2015.
The Zambia Chamber of Mines and its members are committed to working with the Government to finding solutions that will allow them to sustain operations, protect jobs, support local communities and contribute to Government revenue.
We note that from inception the Republican President has been committed to fostering the sustainable operations of the mining companies, as seen through his resolve to guide the line ministries, including the Zambia Revenue Authority on the issue of Value Added Tax Rule 18(b).This will surely help to continue contributing to job creation and poverty alleviation.
The mining industry represents more than 86 per cent of Zambia’s Foreign Direct Investment. This investment is critical for increased capacity and production levels in the mining industry, and is fundamental to the development of growing economies such as Zambia.
It must be emphasised that the Zambia Chamber of Mines has met with Ministry of Mines, Ministry of Finance and Zambia Revenue Authority on a number of occasions both this year and last year.
These positive meetings have served to produce a useful dataset which allows both industry participants and Government to benchmark the current state of the Zambian mining sector.
The Zambia Chamber of Mines is committed to working with all stakeholders to put in place a tax system that will:
- Increase revenue to the Government coffers for social and economic development on a sustainable basis,
- Encourage investment in the Mining sector for sustainability of the industry and security of direct, indirect and induced jobs,
- Be predictable and stable to enable long term planning by the mine operators and potential new entrants into the industry,
- Encourage efficiency in the Mines by optimising cost profiles.
To this effect The Zambia Chamber of Mines and its members maintain their recommendation that the 2015 fiscal regime is deferred and the 2014 fiscal regime is reinstated whilst a more amicable regime is negotiated with all relevant stakeholders.
Issued by: Zambia Chamber of Mines