• At least eight killed in Sudan bread price protests

The New Stuff

11 Views

Zambia says Mines have Failed to Show Impact of higher Taxes


LUSAKA (Reuters) – Mining companies operating in Zambia have failed to show how higher taxes introduced this year will affect their profitability despite objecting to the new framework, a senior government official said on Thursday.

The country, Africa’s second-largest copper producer, increased its sliding scale for royalties of 4 to 6 percent by 1.5 percentage points from Jan. 1 and introduced a new 10 percent tax when the price of copper exceeds $7,500 per tonne.

Zambia also plans to replace value-added tax with a sales tax by April to help bring down mounting public debt.

The Chamber of Mines said last month that as a result of the changes, more than 58 percent of Zambia’s copper producers would be loss-making at current prices.
Paul Chanda, permanent secretary for mines, said his ministry had asked individual mining companies to provide financial models by Friday last week on how the new taxes would impact them, but none had done so.

“We wanted them to show how the new taxes will affect production and profitability but so far we haven’t received anything,” Chanda told Reuters.

“Two mining companies have written to us asking us to give them more time but we haven’t heard anything from the others.”

Mining companies may lay off more than 21,000 workers because of reduced capital expenditure over the next three years resulting from the higher taxes, the Chamber of Mines said last month.

Mining accounts for more than 70 percent of Zambia’s foreign-exchange earnings. Companies operating in the southern African nation include First Quantum, Glencore, Barrick Gold Corp and Vedanta Resources.

SOURCE : REUTERS

Recently Published

»

Nigeria’s top judge to face trial on asset-declaration charges

Nigeria’s chief justice will face trial on Monday for allegedly ...

»

South Africa’s ANC kicks off 2019 campaign vowing jobs, growth

The vote, expected in May, will be a test of whether Ramaphosa is ...

»

CEMAC Banks received over 7 billion dollars in credit during the first quarter of 2018

Banking institutions within the CEMAC region granted varied loans to ...

»

Zimbabwe’s Chamisa calls for dialogue as more workers threaten to strike

Zimbabwe’s opposition leader Nelson Chamisa on Wednesday called ...

»

Geopolitics: Qatar wants its piece of the African cake

Qatar has joined the global powers and nations that are working to ...

»

Who is Felix Tshisekedi, DR Congo’s president-elect?

If losing candidates concede defeat, it will be the DRC’s first ...

»

Mauritania President Ould Abdel Aziz marches to fight hate speech

Mauritanian President Mohamed Ould Abdel Aziz on Wednesday called for ...

»

Ivory Coast cocoa bean quality hit by dry weather, financing woes

Farmers in top cocoa grower Ivory Coast say the current crop is ...

»

2018’s top business stories: AfCFTA, economic protests, oil, visas

The year 2018 coughed up some big economic and business issues, top ...