Mr Vincent Mwale Minister of  Youth and Sports who is Acting Chief Government Spokesperson with Mr Amos Chanda Special assisstant to the President Presss and Public Relation -Picture  By EDDIE MWANALEZA /STATEHOUSE.
Mr Vincent Mwale Minister of Youth and Sports who is Acting Chief Government Spokesperson with Mr Amos Chanda Special assisstant to the President Presss and Public Relation -Picture By EDDIE MWANALEZA /STATEHOUSE.

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.

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31 COMMENTS

    • HH was hoping Anglo American will propel him to power. Tough luck HE Edgar Lungu beat him to the game!

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    • This is what happens when a govt has no vision. Everything is chipantepante, no consistency! First it was SI 35 and 51, then revoked by late president. And this same PF cabinet wants us to trust them with the borrowing they are doing. Lord, what did we do have such useless leadership?

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    • @don’t care, it means from $100 customer pay, $30 will be tax. Government yalyamo. Mine ltd bashamo na 70pin . That’s sad to companies. Imagine it was you salary, kuleka fye job mudala, ninshi tapali fyo chita.

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    • If guy Scott was the president would understand and try to change the economy. We Zambians don’t have any jobs and depending everything from South africa . All the shops , hotels , and raw materials goes and comes from South africa . If South Africa government goes bankrupt then what happens to as Zambians. We need leaders who plan 20 to 50 years forward .

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  1. Good and shame the free mason . .. .jobs preserved. Parliament will easily pass the amendments. Now wait for the UPND zealots when they are back from looking after ngombe….

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    • mr . think of the effects this will have on government revenue and the many projects PF has lined up for completion before you jump in celebrations. this revenue loss mind you.

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    • Ya, but what would you have rather done @Gwaba? Stick to the earlier tax regime which UPND Sycophants like yourself and Edith Nawakwi rounding condemned not too long ago?

      Yes, it is a loss of revenue, but isn’t that what your PRETEND ECONOMIST, HH, was urging? And now you got it and you are still complaining? My goodness, what a bunch of double tongued snakes in God forsaken wilderness of opposition politics!

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  2. Revenue loss is expected but better than to have unresolved impasse.
    But wait you will see a changed position of HH and the talkative NGO’s
    Well done EL

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  3. Why is Vincent Mwale always acting as Chief Govt. spokesperson when Information and Broadcasting Minister (Kambwili) is around. Let’s hope he is not getting acting allowances. PF has no policy direction. Surely from 20% mineral loyalty tax to 9% for open cast mining,,,. What’s the meaning of this? why this drastic change? what was your assumptions when you announced the 20% mineral loyalty and what has led to the change from 20% to 9% within a space of 2 months. The Chipante pante kind of governance by this govt leaves much to be desired and understood. No investor will squarely agree to an upward tax ajustment even when they know that they are making billions of profits hence the need to be very careful with their reasoning

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    • @tombwa, first umwaiche Vincent is Sports & Youth minister which Kambwili is still Youth boss.
      second Kambwili will not be able to put those % in right order.

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    • I believe Kambwili is in South Africa to address Zambians. Whether true or not I’m yet to confirm his meeting somewhere in Sandton. Fellow bloggers I will give you first hand information.

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  4. While this is welcome we hope it will not create another back and forth situation where Mines will again start protests and then there will be another back and forth. While recent happenings with taxation of mines have put the PF in an awkward situation where even opposition parties with MPs who voted for mineral royalty tax hike have been attacking the PF Govt against the law they voted for in parliament,it is evident that since the PF took government they have made serious attempts to get a better tax deal from the mines starting from as early as 2012 when they revised the mineral royalty tax from 3% to 6%. We hope this revision will hold so that we can see stability in the mining sector and the economy.

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  5. Even if they increase or decrease taxes, nothing will happen. Chikwanda will continue raping the economy with his corruption and fiscal indiscipline. Even if RB was a thug, he was better than sata who nepotically brought his uncle chikwanda as Finance Looter.

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    • What about Mwanawasa’s uncle Mpombo, yu moron. And Lungu’s relatives whom we have seen being appointed in a roll. Leave Sata out of it you embecile. He did what he did for this Country and what has yo grandfather ever done for this Country yu nincompoop

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    • His father paid his taxes you moron and probably his paying taxes too. He has every right to point out what he thinks is wrong. Because someone does wrong it doesnt make it right, this sort of thinking is rather backward.

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  6. That revenue loss if expenditure tightly fixed and not variable in the short to medium term will also require additional resources in revenues otherwise other tax lines are increased marginally to cushion the gap or increased revenue collections efforts targeted to mop up previously uncollected and lagging taxes on other revenue lines

    It will be a shift of forcus to ensure sustainable fiscal policy impacting current monetary to register that growth forecast in the midst of slump and depressed commodity prices with somehow predictable mining revenues on current approved mining taxes

    Remove SA and Nigeria and see the grow for Africa other economies and see Zambia performance

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  7. Sustaining that good Growth Zambia has registered and is showing amongst the peer countries , Amid Shifting Global Forces-Parity Conditions- is the key here and the and looking at Downside Risks, and Policy Recommendations is also important to see for Zambia
    Look at the Total Public debt also paying particular attention to primary expenditure lines and access it with total projected revenues and Grants and see the efforts on other tax lines

    Without further debt, the Grants from partners will go a long way to meet the shorterm and adjust marginally next budget cycle given the mines come around

    Look at Congo or Zim and see the performance and identify the pitfalls to adjust…

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  8. How many U-turns are we going to have by these empty tins? What people do not understand is that the budget has already been set and someone is going to pay for this fiscal void left by these changes; meaning the gov’t is going to have to borrow to balance the books…in any organisation if one made such reckless decisions heads roll; why is not the same with our politicians in Zambia?

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    • @ Dungeon

      Firstly, his father was not paid to mess-up tax revenue;
      Secondly, he knows his father and
      Thirdly, who is your father among multitude?

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  9. PF is a party of cadres, by cardes and for cadres. One of the parties that found it’s way in government through lies and deceit. Donchi kubeba

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  10. I’ve read that the revenue loss is approx K2,3bn which is approx $350m.
    How will Chikwanda revise his budget spending side to match the reduced revenue side ? Who gets the chop ? Infrastructure, healthcare, education ?
    And civil servants think they can expect a salary increment ?
    Dear Zambians. Next time lets shut our mouths about the mines coz we have been shown our place so sweetly. We have been whipped into place, and with our pride on our pockets, we will say thank you for the whipping, we needed a reality check

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  11. ADB to speed up approval procedures / Bank strives to serve Asia infrastructure development

    The Asian Development Bank has compiled a reform plan, the main pillar of which is to substantially speed up procedures for extending loans, The Yomiuri Shimbun has learned.

    The China-led Asian Infrastructure Investment Bank (AIIB) aims to meet robust demand for infrastructure development in emerging economies by swiftly offering loans. The improved operational efficiency at the ADB, which supports infrastructure development in the Asia-Pacific region, also is aimed at quickly responding to this demand.

    The ADB decided to draw up a reform plan as emerging economies complained about slow procedures at existing international financial organizations, including the ADB and

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  12. Ka rollover and some refinancing those term structures and ensure credit quality

    Membership is critical but tricky here

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  13. The ADB has extended loans to a variety of projects, including the construction of a main road in India, an occupational skills training program in Nepal and post-typhoon reconstruction in the Philippines. In 2013, the ADB offered loans totaling $21.02 billion, or about ¥2.5 trillion.

    Some member country to Zambia could be quicker in Japan and China

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  14. The problem with us Zambians is that we easily forget how copper has elusively disappointed us. We still look at the mines as the magical panacea that will lead us unto developement. This is an entirely wrong notion which will send us to total ruin. When you look at the performance of copper during the last century it will be noticed the price of copper has constantly flactuated. In Zambia we have seen mines closing and others changing ownership with still others reducing their output. Lumwana Mine the original company that started it sold it to Barrick Gold did we Know the reason why? Kabwe mine closed and put on care and maintenance why? The mine in Kalulushi was closed and then sold to the Chinese why? to name a few. First Quantum wanted to open a mine in Mkushi but stopped due to the

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  15. [contd] poor copper prices. In the last month copper was trading between $5500 and $6500 per tonne. The percentages I have seen are high and scaring. Mining and processing metals is very expensive. Maintaining mining equipment is equally very expensive. We should be fair to our investers. This is why I have not heard of any Mulenga or Mundia copper mines because starting up a mine is costly. Thats why the indigenous mine owners are jerabos who steal what other people have mined. We Zambians must just learn to pay our taxes ,rates and work hard. Lets start our own indeginus businesses and invest in our own mines.

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