Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list

Zambia's new government to consult mining firms before changing tax regime

Energy | Electric Power | LNG | Natural Gas | Natural Gas (European)

The future of European gas after Groningen

LNG | Natural Gas | NGL

Platts LNG Alert

Commodities | Metals | Steel | Materials | Building & Construction | Financial Services | Macroeconomics

Steel Markets North America Conference, 16th Annual

Metals | Steel

Asian mills cautious over rising Chinese steel exports in the region

Zambia's new government to consult mining firms before changing tax regime


Zambia's new Patriotic Front Government said Sunday that it wouldconsult mining companies before a new tax regime was introduced and not makearbitrary changes.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The country's newly elected president, Michael Sata, will not frame ajungle law to make changes to the tax regime but will consult the miningcompanies, an official, Lameck Mangani, said, adding: "We cannot destroycompanies that are giving the country money."

He said the Patriotic Front had statistics and these would be tabledbefore the mining companies.

Meanwhile, the largest labor union in the Zambian mining industryendorsed the reintroduction of a windfall tax by the new government becauseit said Zambia was not benefiting from increased prices of copper.

The Mineworkers Union of Zambia, with membership of more than 15,000,said that Zambia was losing a lot money through unpaid windfall tax by mining companies.

MUZ president Boniface Mukuka said the suggestion by the new governmentto reintroduce the windfall tax for the mining companies was a welcome moveand should be supported by all Zambians.

He said the new minister of mines and minerals development should alsotake a fresh look at the employment of casual labor in the mining sector.

He said the employment of labor on casual terms was not appropriate asworkers were fired at will and without benefits.

The new government under the Patriotic Front, which took over reigns ofpower on September 23 after winning a landslide victory in the September 20general elections, vowed in its campaign that it would look at mining taxesto ensure the taxes were proportional to the profits made by mining companies.

As of now, mining companies in Zambia pay a 3% mineral royalty tax, 30% corporate tax and 15% variable tax.

One of the priorities of a PF government was to review taxes in themining sector, Robert Sichinga, a member of the PF and a business consultant,said on a television program on September 24.

He said it was imperative that the new government reintroduced windfalltax so that all Zambians could benefit from the mining sector.

He said government would ensure that investors did not externalize allthe profits they made in the sector but use the money for development inZambia.

In his inaugural speech on September 23, President Michael Sata said foreign investment was important to Zambia, as it did not only create jobsbut equally contributed to the economic empowerment of Zambians.

"We will continue to work in fair partnership with the investors alreadyin the country and welcome new ones," he said.

"It is our hope that investors will abide by the labor laws of thecountry ensuring that Zambians are not disadvantaged," he said.

--James Mwambazi,