Government has revised the 2015 taxation regime for the mining sector which will see mineral royalty tax rate for open cast mining and underground mining operations pegged at nine percent.
Acting Chief Government Spokesperson Vincent Mwale said this at State house in Lusaka today after the 7th Special meeting held this morning.
Mr. Mwale said corporate income tax on income earned from mining operations will be at 30 percent and corporate income tax on income earned from mining operations processing will be at 35 percent.
He said variable profit tax on income earned from mining operations will be limited to 50 percent of taxable profits.
Mr. Mwale said government will also stiffen penalties for tax offenders.
He said Zambia Revenue Authority will also introduce stringent enforcement mechanisms to effectively monitor mining activities and ensure greater transparency among mining companies when reporting.
Mr. Mwale said in order to implement today’s Cabinet meeting decision, government will undertake all the necessary administrative and legislative measures rapidly.
He explained that once the bill has been approved by Parliament, the effective implementation date will be 1st July, 2015 so that there is a logical sequencing in the merging of two tax regimes in one fiscal year.
Mr. Mwale said government has stressed that the approved mining taxation regime will bring about the desired stability, predictability, consistency and transparency in the mining sector.
He stated that government is planning to link mining taxation to the Medium Term Expenditure Framework to ensure greater stability and predictability in the sector.