Category: Mining tax

Zambia announced tax breaks for mining companies, drastically cut its budget deficit target and said it expects to conclude debt restructuring talks with creditors early next year.  Mining royalties will be deductible from income taxes, Finance Minister Situmbeko Musokotwane told lawmakers Friday in his first budget speech since his party won power in August elections. He didn’t announce changes to the royalty rates. In 2019, the nation implemented the 10th change to the tax regime in 16 years. The mining industry’s lobby group had complained for years that not being… Read More Here

The new UPND government’s plan to rationalise the mining tax regime to attract investment and boost production has been welcomed by the country’s largest taxpayer, First Quantum Minerals (FQM). The 2022 Budget – under the theme ‘Growth, Jobs and Taking Development Closer to the People’ – presented to Parliament on Friday (October 29, 2021) by Minister of Finance and National Planning Dr Situmbeko Musokotwane unveiled a key revision to the  Zambia mining tax regime; namely the return to the approach followed by other global mining jurisdictions which enables companies to deduct… Read More Here

Zambia’s mines minister said on Wednesday that the government had been reviewing the mining tax framework with key stakeholders to design a regime that would be stable, predictable and competitive. “This will also attract both local and foreign investment in mining and ultimately scale up mineral production in the country,” Minister Paul Kabuswe said in the parliament of Africa’s second-largest copper producer. The mining industry is key for heavily indebted Zambia, accounting for 10% of the country’s GDP and more than 70% of its foreign exchange earnings. Kabuswe, appointed last month by recently elected President Hakainde… Read More Here

Zambian government has been urged to address impediments to investment inflows and production growth, and to guarantee stable tax policies. Zambia Chamber of Mines president Dr Godwin Beene this week said it was imperative to rectify negative investor perceptions of the mining sector in the country. “Our sector, like any other sector that thrives on engagement with foreigners, is sensitive to public perception. Since the year 2000, when Zambia’s investment policy changed, the new mining sector has been battling a bad press leading to Government putting various measures in place… Read More Here

SOLWEZI, ZAMBIA – Zambia’s largest taxpayer, First Quantum Minerals (FQM), paid more than US$850 million in taxes, royalties, duties and fees to the Zambian government, along with community and infrastructure expenditure in 2020. To put it into perspective, the contribution paid to Zambia represents 78% of the entire contribution FQM paid globally. The company also has operations in Australia, Finland, Mauritania, Panama, Spain and Turkey, as well as exploration prospects in a number of other countries. The figures were disclosed through FQM’s annual Tax Transparency and Contributions to Government Report. Originally… Read More Here