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Saturday, July 11, 2020

Government reviewing VAT to address concerns raised by Mines

Economy Government reviewing VAT to address concerns raised by Mines

Mines, Energy and Water Development Minister Christopher Yaluma (right) and his Deputy George Zulu (centre) inspect the Lusaka fuel storage depot with Lusaka Province Minister Obvious Mwaliteta before commissioning of the plant
Mines, Energy and Water Development Minister Christopher Yaluma
(right) and his Deputy George Zulu (centre) inspect the Lusaka fuel
storage depot with Lusaka Province Minister Obvious Mwaliteta before
commissioning of the plant

GOVERNMENT is reviewing the value added tax (VAT) rule 18 to address some of the concerns raised by the mining industry, Minister of Mines and Minerals Development Christopher Yaluma has said.

VAT rule 18 ensures fairness in international trade by not subjecting exporters to VAT zero-rating while at the same time providing tax refunds on exports.

Mr Yaluma said Government is reviewing VAT rule 18 to promote fairness in the mining sector.

“As Government, we are not interested in seeing our mines failing to operate; we support the success of the mines. Right now, VAT rule 18 is currently under review to address some of the concerns that you raised,” Mr Yaluma said.

He was speaking in Kitwe yesterday at a consultative meeting with mine suppliers and contractors on Government’s policy direction for the mines this year.

Mr Yaluma said VAT rule 18 has some legal implications whose contents the attorney general is studying.

He urged mining companies with concerns over the increased mineral royalty tax to approach Government and outline the various effects that the new tax regime would have on their businesses.

Mr Yaluma also said Government will simultaneously implement various statutory instruments aimed at creating a conducive environment for local mine suppliers and contractors to flourish.

He said currently, only a few local companies are doing business with the mines which is not suitable for the growth of local industries.

Mr Yaluma said Government will soon implement the Mines and Minerals Development Act which will enable more Zambians to own mines and create job opportunities for local people.

He also said Government will give the infamous slug dump site in Kitwe commonly known as ‘Black Mountain’ to the youths for them to generate income.

Mr Yaluma, however, said that Government wants to ensure that all the safety measures are put in place before the slug dump is handed over to the youths.

And Association of Mine Suppliers and Contractors (AMSC) president Augustine Mwamba said most local suppliers and contractors are not benefiting from the business in the mining sector.

Mr Mwamba urged Government to monitor the mines to ensure that they are giving business to local companies.

Among the stakeholders that attended the meeting were the Mineworkers Union of Zambia (MUZ), National Union of Mines and Allied Workers (NUMAW) and the Kitwe District Chamber of Commerce.

[Read 32 times, 1 reads today]


  1. The two weeks left, PF should be packing so office buildings and space can be clean for the new government. UPND is gonna take care of everything, PF should spare Zambian time, finally we can breath fresh air, only PF are living in a dream, get the reality.

  2. These dull ministers ! it has to take a presidential-bye election for them to realize the demerits of VAT rule 18 ? The Chamber of Mines and other stakeholders such as agribusiness players affected by this stupid VAT rule spent the whole year in 2014 lobbying government to drop contentious provisions of the Rule but government could not listen. The simple reason why these useless ministers could not listen was that no election was in sight and all was well with their eating business. Now there scared of losing an election and suddenly they are telling us that the VAT rule 18 is unfair to mines. What kind of behavior is this ? I am even shocked that lizards on the streets have not yet started protesting at this behavior by now!

  3. Is it VAT or royalty tax rates which these mines are against? As for royalty tax, the govt should adjust the open pit rates to not lower than 15% which will be fine. The underground rates are ok. If Lumwana wants anything lower than 15%, they should be told that Anglo American are interested in your mine and they are ready to accept a 20% royalty tax

  4. Why Now.? Very useless, where have these fatty-neckless zombies been all this long.?

    Forget sir, its too late to listen to yr comedy.

  5. Well we have Guy Scott, confirming a real life action…dropping fuel prices, a real and actual fact. On the other hand we have HH making empty promises to drop the price of mealie meal and guess whom UPND Cadres believe….yes Mr Empty promises!

    There is only one party in power 20 January, PF.

    • This comment is on the wrong page, somehow!

      This is nonsense and it is the action of Guy a Scott, interfering with the Mines for his Western friends. Nothing wrong with VAT Rule 18, nothing wrong with royalties as set.

      You just wring your hands at all the frustrations these faction groups serving their interests.

      I am just fed up with Zambia! At this point I understand why Mushota feels she does not wNt to be Zambian.

      We can’t have these Mines telling us what they want to do in Zambia.

  6. 6% royalty tax is a big joke. If p.a.y.e is 16% min, why can royalty tax be 20%? If the investor threatens to pull out, let them go & govt bring back zccm, like they brought back zamtel & zambia railways.

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