Sunday, July 21, 2024

Government’s move to maintaining policy and tax consistency will improve production – Chamber of Mines

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The Zambia Chamber of Mines ( ZCM ) has welcomed the government’s pronouncements in the mining sector which were unveiled by Minister of Finance and National Planning, Situmbeko Musokotwane when he presented the 2023 National Budget to Parliament.

Zambia Chamber of Mines President, Godwin Beene says Dr. Musokotwane’s sentiments on how the neighbouring Democratic Republic of Congo has overtaken Zambia in the area of production over the last decade is a sign that improving production to new heights is top of the agenda.

During his Budget presentation on Friday, the Finance Minister also expressed worry that Zambia’s production has stagnated at around 800 thousand metric tonnes of which Democratic Republic of Congo has surpassed Zambia.

The Chamber of Mines president added that Government showing determination to maintaining policy and tax consistency will improve production.

“We believe this is a budget for growth. The Minister himself has been pushing for 3 million tonnes for Zambia. He has attended to artisanal and small scale miners needs in Zambia.

“ He has attended to the need for the mining industry to produce. There is a lot to do but we believe we are on the right track,” Dr Beene said.

And Minister of Mines and Minerals Development, Paul Kabuswe says formalization of artisanal and small scale mining is in line with the Mining Policy which will be launched soon.

Mr Kabuswe disclosed that the policy is complete awaiting cabinet approval stressing that small scale and artisanal mining is a critical component of the ministry.

“You heard that resources have been allocated to make sure that Zambian who have access to licenses can be given equipment Resources have been allocated to the procurement of equipment that should support the artisanals and small scale miners.

“ For me this a very exciting budget because it has gone ahead even before we introducer the mining policy which will also trigger us to look at the Mines and Mineral Act to amend certain clauses,” Mr Kabuswe said.

During the presentation of K 167.3 billion worth National Budget, Dr Musokotwane made various pronouncements which include restructuring the mineral royalty regime with respect to copper.

The tax will now apply on the incremental value in each adjusted price band as opposed to the aggregate value when the price crosses the respective price threshold.

The Minister also announced formalization of small scale and artisanal mining.

The Finance Minister pledged that to ensure competitiveness with neighbouring D.R Congo in copper production government will restore mineral production by maintaining policy and tax consistency among other measures.

17 COMMENTS

  1. Why do you even publish what this annoying The Zambia Chamber of Mines ( ZCM )states they would be happy if mines paid zero tax but only their subscription…no wonder the man who doesnt know how wear a tie is smiling.

    • Heh!Heh! Heh! How do you wear a tie? Some of us know nothing about these mentally enslaving attires. During colonialism the masters used to tell us to look civilised by wearing a tie and jacket, like them. Most of us have gone on to enforce such mental enslavement
      That’s why I personally never wear a tie and jacket.

  2. This is the nonsense you voted for. All upnd supporters and cadres like this one should be ashamed.

    We are not surprised to see many of those who supported upnd now turning their backs. A wise man knows when he has done wrong and owns up to their mistake.

    2026 vote pf for progressive inclusive development. Not ma lubbish aya

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  3. Last week the British parliament dramatcally announced tax cut and opted to borrow to mitigate the energy crisis. In effect, that is borrowing for consumption. What happened to the Pound Sterling? It nose dived. No sane person wants to invest in a country without a return.

    Zambia’s consistent tax regime and 2023 budget have been celebrated by our country’s second largest copper producing mine, Trident’s FQML.

    The more productive Zambia gets, the richer it will become (all in the name of tax collection and prudent use of such taxes). If our tax system betrays us, the much sought for investment will elude us.

    Not only is our currency still afloat, the high inflation of 25% is pridefully contained at 9%!

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  4. The mainn problem we have in zambia is that most people lack commerce and others dont eve understañd advantages and especially the disadvandages of the polices which seem to glitter to to them. i thak the new dawn for the free education and the business studies should be encouraged in every so that in very near zambia can a nation of well vérsed citizens.We all know and understand that amost every province in zambiai is potentia and attrative for big mining operations. And Imagine if ten big mining companies were attracted to come to and that each province atlest ône of such companies, how many people would be dîrectly and directly be employed ? porverty would tremendously red?ce. if you visited kalumbila districbefor the coming of the mnes almost all the hôuses were grass thathed just…

  5. The mainn problem we have in zambia is that most people lack commerce and others dont eve understañd advantages and especially the disadvandages of the polices which seem to glitter to to them. i thak the new dawn for the free education and the business studies should be encouraged in every so that in very near future zambia can a nation of well vérsed citizens.We all know and understand that almost every province in zambiai is potentia and attrative for big mining operations. And Imagine if ten big mining companies were attracted to come to zambia and that each province atlest received ône of such companies, how many people would be dîrectly and directly be employed ? porverty would tremendously red?ce. if you visited kalumbila districbefor the coming of the mnes almost all the hôuses…

  6. The secondment of zambias royalties in as much as mineral deposits sites empowering scantily what we expect.
    There is no benefit to the ring-fence drop down economic policies of past regimes in as much as tax collections are concerned.

    At best is lower inflatory numbers to act as a bullwork to future highs and lows in as much as the foreign reserves can withstand as long as future spending is in line with what many percive as the economic freedoms Zambians look forward to.

  7. So what if production increases and we are getting nothing as a country in terms of taxes?
    We are shamelessly and naively giving away our God given resources just like that and instead opting to borrow money.
    Cry, my beloved country!

  8. These are fo.ols who have failed to understand a very simple thing. The minerals that mines are taking will never be replaced, it’s a non renewable therefore if Zambia does not get maximum benefits from the mining firms that is it, will might even forget about develop our nation…This is the most usele.ss government

  9. whether done by zambians, the fact is that minerals are diminishing resources. So what most zambians need now are employment opportunities that are likely to come and be created by the attracted potential mining firms aand not theories of the pf cartel

  10. Mineral royalty ought to vary according to:
    *** The jurisdiction in which the mine is located
    The metal produced
    The social needs of the ppulace, andThe form in which the metal/mineral is exported (raw vs finished)
    ACCORDIN TO MY MODEL, ZAMBIA SHOULD BE CHARGING 6-7.5% MINERAL ROYALTTY
    In my opinion, 0.5% of royalty collected should go directly to the “host community” in which the mine is located

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