Cap Mining Royalties at 7.5% - Zambia Chamber of Mines
Zambia’s Chamber of Mines has advised that mineral royalties should be capped at 7.5 percent in the 2020 budget. This is to safeguard the health of the mining sector and promote additional investment. A Zambian Mine. Source : daily maverick.co.za The mining body had this as part of its proposals to the finance ministry. It argued that the 2019 mining tax regime had raised the tax burden on mines to unsustainable and noncompetitive levels. Africa’s No.2 copper producer increased its sliding scale for royalties of four to six percent by 1.5 percentage points and introduced a new ten percent tax when the price of copper exceeded 7,500 dollars per tonne. The scale is adjusted so that royalties are paid at higher levels as commodity prices climb and are reduced as prices fall. The mineral royalty tax should also be tax-deductible for mining firms as making it non-deductible as Zambia does amounts to taxation on revenue not received, it said. The chamber said a proposed swi...
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