(DAILY MAIL) UK backs new mining tax
UK backs new mining taxBy KASUBA MULENGA
BRITAIN has endorsed Zambia’s new mining tax regime because it is aimed at enhancing equity in the distribution of mineral wealth between mining companies and the people of Zambia. A statement issued in Lusaka yesterday by the British High Commission and the Department for International Development says Britain supports Zambia’s move on the new mining regime.
“The UK Government supports the Government of Zambia in its objective of achieving a more equitable distribution of natural resource wealth, whilst at the same time ensuring Zambia remains an attractive destination for mining investment,” the statements reads.
The statement adds that the London-listed Vedanta Resources, which has the majority 51 per cent shares in Zambia’s largest mine, Konkola Copper Mines, was one of the several mining companies in Zambia but the only one registered in the United Kingdom.
“It is better for Zambia to ensure it has the right regime in place for the mining sector rather than rely on changes to legislation in each of the countries where the companies are registered,” the statement reads.
“This is why Britain is one of the cooperating partners that have helped Zambia with finances to get its independent technical and legal advice on renegotiating mining development agreements.”
Britain has also endorsed Government’s efforts and those of other cooperating partners to support the Environmental Council of Zambia in strengthening and enforcing the country’s environmental law and regulations.
President Mwanawasa announced on January 11, 2008, when he officially opened the second session of the 10th National Assembly that Government had decided to introduce a windfall tax on copper and raised mineral royalty to ensure Zambia’s maximum benefit from mineral resources.
In the last financial year, mining firms earned a whopping US$4 billion but paid just over US$150 million in taxes.
The proposed new mining tax regime, which takes effect on April 1, 2008, would earn Zambia an extra US$415 million in additional tax revenue.
Labels: WINDFALL TAX
posted by MrK @ 11:50 PM
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