Maravi

Govt affirms cordial relations with mining firms

Govt affirms cordial relations with mining firms
By Chiwoyu Sinyangwe
Wednesday May 21, 2008 [04:00]

MINES minister Dr Kalombo Mwansa has said the government's relationship with the mining companies in the country has remained cordial despite the new mining taxes. The government introduced new mining fiscal regime which came into effect on April 1 this year. The move resulted in increased mineral royalty to three per cent from 0.6 per cent, while corporate tax on mines rose to 30 per cent from 25 per cent.

The government also introduced a 15 per cent variable profit tax on taxable income above eight per cent and a minimum of 25 per cent windfall profit tax.

The move led to an outcry from mining companies operating in the country which congregated through the Chamber of Mines of Zambia, a cartel of mining companies operating in the country, to denounce the new tax regime.

The mining companies insisted that, by implementing the new mining fiscal regime, the government had abrogated the development agreements that it signed with them.
But Dr Mwansa insisted that the government had clarified with the mining companies and that the new mining taxes were not meant to stifle growth of the sector in the country.

"We still have a cordial relationship with them. Nothing has change. I think they have understood that our reasons to increase the taxes were not meant to hurt them but that we only wanted to get a fair return for our mining sector," said Dr Mwansa. "In fact, we should have been meeting them through their chamber Chamber of Mines of Zambia when we were on the Copperbelt last week for our quarterly meeting but we postponed but we should be meeting them very soon."

Labels: MINING, WINDFALL TAX

posted by MrK @ 3:40 AM