Zambia’s Finance Minister Refutes Tax Holidays for Multinational Mining Companies
Zambia’s Finance Minister, Situmbeko Musokotwane, has dismissed allegations that the government provides tax holidays to multinational mining companies, asserting, “There is no mine that has been given a tax holiday.”
Speaking in Parliament, Musokotwane emphasized that Zambia’s tax policies are designed to align with international standards, ensuring stability in the mining sector while fostering investment. .
He noted that previous policy inconsistencies had led to production declines and mine closures, prompting the government to adopt a more consistent approach.
The Minister criticized misinformation from certain civil society organizations and political figures, which he said damages public trust and undermines Zambia’s negotiating power on the global stage.
Specific claims, including those from the Zambia Conference of Catholic Bishops, allege that tax breaks for mining companies have reduced government revenues.
Musokotwane urged stakeholders to base their critiques on evidence, cautioning against the spread of false information that could harm Zambia’s international reputation and deter potential investors.
Illegal mining remains a significant concern, with U.S. Ambassador to Zambia, Michael Gonzales, reporting that illicit activities cost the country $500 million in the first nine months of 2024.
Musokotwane underscored the need for stronger enforcement mechanisms and collaboration among stakeholders to address this pressing issue.
The Finance Minister appealed to civil society, media, and religious organizations to avoid amplifying unverified claims. Instead, he encouraged constructive dialogue and transparency to support the mining sector, which he described as critical to Zambia’s sustainable economic growth.
This stance reflects the government’s commitment to fostering a balanced and transparent approach to mining sector governance, ensuring that policies are both investor-friendly and beneficial to Zambia’s broader economic development.
