Zambian State Assures Mines of Stable tax

THE mining sector has been assured by Government of stable tax measures to improve its operations.

Minister of Mines and Minerals Development Richard Musukwa said there will be no surprises for the mining sector’s tax measures because Government wants to be consistent.

The minister said this yesterday when Zambia Chamber of Mines chief executive officer Sokwani Chilembo met him at his office.

“Government is ready to listen to the industry and create a win-win situation. Some measures we have put in place are meant to seal loopholes of illegal vices such as tax avoidance,” Mr Musukwa said.

The minister also said Government does not expect mines to use COVID-19 as a scapegoat to slow down production.

He said production by the mines should either be maintained or increased.

“As Government, we want to ensure that mining companies are kept afloat during this COVID-19 period,” Mr Musukwa said.

He said Government will provide incentives to companies which bring huge investments into the country, especially during the COVID-19 period.

He wondered why some mining companies are always complaining about not making profit but they have continued operating.

“Government’s good gesture needs to be reciprocated,” Mr Musukwa said.

The minister also said good grade copper deposits which have been discovered at Lubambe Mine will help create more jobs in the country.

Mr Musukwa said Government will support Lubambe Mine as it mobilises to explore the copper.

He appealed to ZCCM Investment Holdings to offer competitive prices for gold purchases to discourage illegal mining activities and to build reserves at the Bank of Zambia.

“Gold resource is meant to benefit the country and we will not allow any illegal mining activities.

“I am aware that some people want to cause disturbances at Kasenseli Gold Mine [in Mwinilunga] over our decision to formalise gold mining,” Mr Musukwa said.

Mr Chilembo is hopeful that the long-standing tax issues between mines and Government will be resolved.

He appealed to Government to help mines remain afloat amidst challenges brought about by the coronavirus pandemic.

“We are seeking Government’s support around our expanding activities to mitigate the challenges we are facing. Help us to remain competitive,” Mr Chilembo said.

He said the chamber wants assurance of tax stability from Government.