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Review mineral royalties in 2008 budget - DPI

Review mineral royalties in 2008 budget - DPI
By Fridah Zinyama
Tuesday October 30, 2007 [03:00]

DEVELOPMENT Partnership International (DPI) Zambia has echoed statements by stakeholders that government reviews the mineral royalties and corporate taxes in the 2008 national budget. DPI-Zambia strategy coordinator Richard Musauka said development agreements should be reviewed including concessions so that the nation can benefit from increased earnings from the mines.

“The tax measures should include withholding tax on dividends, interest, royalties, management fees and payments to affiliates or subcontractors in the mining sector at a standard rate,” he said.

Masauka said mining firms that had received tax incentives in 2000 to enable them stabilise their operations at that time of low prices should be made to contribute more to the national treasury since the mineral prices at the international market were at their best.

Masauka said the 2008 national budget should provide for mining companies in the country to pay mineral royalties and corporate tax at a revised standard.

And finance and national planning minister Ng’andu Magande said government had only received K300 billion from mineral royalties and company tax as of August this year.

“Questions have been raised as to whether the concessions are still justifiable. We have seen an unprecedented increase in the international metal prices. Therefore, the basis on which these concessions were given no longer exist which is why our renegotiating team is retreating to find the best way in arriving at a status that benefits both the mining companies and the people of Zambia,” he observed.

Labels: 2008 BUDGET, DEVELOPMENT AGREEMENTS, DPI, MAGANDE, MINING CONTRACTS

posted by MrK @ 4:04 AM