Promoting Equitable Taxation: Balancing Investments and Social Benefits in Zambia
Finance and National Planning Minister, Situmbeko Musokotwane, emphasizes the importance of establishing a balanced approach to promote investments and create an equitable taxation framework that benefits both the industry and societies.
Dr. Musokotwane states that the government’s primary focus is on encouraging sustainable mining practices, attracting further investments, and ensuring the fair distribution of benefits from the industry among the population.
Speaking at the global conference on the Future of Resource Taxation in Lusaka, Dr. Musokotwane highlights the integral role of mining in the global economy, shaping nations, driving economic growth, and fostering sustainable development.
He asserts that governments must strike a balance between attracting investments in the mining sector and ensuring mining companies contribute their fair share of taxes toward the socio-economic development of the country and the well-being of its citizens.
Dr. Musokotwane emphasizes the need for a comprehensive approach involving robust tax legislation, effective enforcement and monitoring mechanisms, capacity building, and international cooperation to combat tax avoidance and profit shifting.
He urges conference delegates to share best practices and develop innovative strategies that will shape policies promoting responsible and sustainable mining practices worldwide.
Dingani Banda, the Commissioner General of the Zambia Revenue Authority (ZRA), expresses the authority’s determination to unlock the transformative potential of mining taxation. This approach aims to drive the industry toward a future that balances economic prosperity, social well-being, and environmental stewardship. Mr. Banda highlights that Zambia has realigned tax administration to respond to the changing business environment, acknowledging the need to adapt to the evolving industry.
Mary Baine, Director for Tax Programmes at the Africa Tax Administration Forum (ATAF), explains that the conference seeks to generate innovative ideas that enable resource-rich countries to maximize revenue from their natural resources.
The event provides an opportunity to consolidate solutions gathered over time and assist these nations in realizing the full benefits of their resources.
Mohato Moima, a member of the Intergovernmental Forum-IGF Executive Committee, emphasizes the need to strengthen tax administration to prevent countries endowed with natural resources from losing millions of dollars in mining revenue.
The three-day conference, scheduled from 26th to 28th June, has attracted over 300 local and international delegates.
