The Zambia Chamber of Mines (ZCM) has proposed further changes to the mine tax regime in next year’s budget to lower the sector’s high tax rate that is inhibiting investments.
According to a report published by the Zambia Daily Mail, in the 2022 national budget, Government made changes to the mine tax policy by making mineral royalty tax deductible as an expense.
Tax deductibility refers to claims made to reduce the company’s taxable income, arising from various investments and expenses incurred by a taxpayer.
However, the Centre for Trade Policy and Development (CTPD) is of the view that the taxation policies should not be changed to favour large-scale mines .