Economist Oliver Saasa has urged government and mining companies in the country to embrace dialogue in finding a lasting solution to the new mining tax regime which has forced some firms to downsize their operations.
Commenting on threats by Mines Minister Richard Musukwa that government will revoke the License for Konkola Copper Mines if it proceeds with its plans to downsize its operations owing to the new mining tax regime to be effected this year, Professor Saasa said dialogue will allow both parties to find a lasting solution to the matter.
Professor Saasa said dialogue must become an integral part part of the solution to the new mining tax regime before more Zambians lose their jobs.
He said threats from both government and mining companies will not help in finding a solution but will result in job losses in the mining sector.
Professor Saasa noted that although it is the responsibility of government to maximise compliance in terms of tax and to raise requisite resources needed for development, this should not be done by disadvantaging players in the economy.
He emphasised that the mining industry is critical to the development of the country and government needs to commit to dialogue other than taking draconian measures that will be costly to both parties.