Small Scale Miners Urge Tax Incentives for Start-up Mines in Zambia
The Federation of Small Scale Mining Association of Zambia has recently made a plea to the government, requesting a 5-year tax-free period for start-up artisanal and small-scale mines in the upcoming 2024 national budget.
This proposal aims to provide these miners with an opportunity to establish and streamline their operations, similar to the benefits enjoyed by large-scale miners during their initial business setup.
Sankisha Chilwesa, the Deputy Publicity Secretary, emphasized the importance of granting tax incentives to artisanal and small-scale miners.
Chilwesa asserted that such measures would contribute to their organized functioning and growth within the industry. Additionally, he advocated for a reduction in the mineral royalty tax, proposing a standard rate of 3 percent instead of the current 4.5 percent.
Chilwesa presented these recommendations during the 2024 National Budget Consultative Meetings held in Lusaka. The aim of these consultations is to gather input and suggestions from various stakeholders to shape the national budget effectively.
Another key figure expressing the need for an improved fiscal regime in the mining sector was Sokwani Chilembo, the Chief Executive Officer of the Zambia Chamber of Mines.
Chilembo highlighted that a more favorable tax system would incentivize further exploration of mineral resources in the country. As part of the proposals submitted by the Chamber of Mines, he emphasized the necessity to adjust the tax scale regime, making the sector more attractive to investors.
By implementing these suggested tax incentives and adjustments, the Zambian government can create an environment conducive to the growth and development of the artisanal and small-scale mining sector.
These measures would not only support the establishment of new mining ventures but also encourage greater exploration of the country’s mineral resources.
