Zambian Government Changes Decisions, Reinstates Tax
LUSAKA – Only four weeks after dropping a tax on the export of metals, the Zambian government has reversed its position and once again reintroduced the tax.
Earlier this week the Secretary to the Treasury of Zambia Fredson Yamba confirmed that the national government will soon reinstate the 10 percent tax on the export of unprocessed metals, despite originally lifting the tax on earlier this month on October 4th.
The tax was originally dropped in a response to concerns raised by mine operators claiming that the 10 percent tax cut made the export of unprocessed metals unviable as Zambia does not currently have the smelting facilities to process all of the raw metals being extracted in the country.
Fredson Yamba said that the government now believes that the removing the tax will not benefit the country, and will only result in a drop in tax revenues without a corresponding increase in exports of unprocessed metals.
However, the tax regulations will now be amended and the tax will only apply to semi-processed metals.
Shortly following the announcement, George Chellah, the spokesperson for the President of Zambia, confirmed that the necessary legislation to reinstate the tax has already been approved, and the tax will come into effect in the very near future.
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