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Zambia Approves Amendment to Mining Act to Increase Taxes

Zambia's parliament approved an amendment to the Mines and Minerals Act that will increase taxes and abolish existing agreements between the government and mining companies, the Zambian Chamber of Mines said. The bill, which will be signed into law by President Mwanawasa on April 1, will lift royalties on sales fivefold to 3 percent and increase corporate income tax to 30 percent from 25 percent. That will raise the effective tax rate on miners to 47 percent from 31 percent. The government's "unilateral decision to dishonor existing development agreements" is disappointing, Fred Bantubonse, general manager of the chamber, said in a telephone interview from the capital, Lusaka, late yesterday. "This is arm twisting."

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Posted Mar 29 2008, 05:11 AM by memeza / Zambian News
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