Category Taxation in Zambia

Zambia Drops Cancels Hike to Mining Taxes

March 26, 2015 Taxation in Zambia

Mine in ZambiaLUSAKA – Mine operators in Zambia will soon have a temporary reprieve from a recent tax hike, as the government looks for more amicable solution to balance the need for tax revenues and the interest of the mining sector.

On March 25th the President of Zambia Edgar Lungu announced that the government will drop the recently implemented hikes to mineral royalty taxes, following months of negotiations and protest from mineral extractors operating in the country.

Late last year the government announced that mining companies would no longer be required to pay income taxes, however, the measure would be replaced with a hike in royalties, with the rate for open-cast mines rising from 6 percent to 20 percent, and the rate for underground mines rising from 6 percent to 8 percent.

However, the ris...

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Copper Exporters Get Tax Refund in Zambia

August 27, 2014 Taxation in Zambia

LUSAKA – Copper exporters in Zambia are set to receive a windfall tax refund as the government eases the paperwork for the industry.

On August 26th the Finance Minister of Zambia Alexander Chikwanda announced that the government would relax the rules applied to copper exporters, a move that will lead to the repayment of more than USD 600 million of previously withheld VAT refunds from the government to copper exporters.

Previously the government required all copper exporters to produce import certificates from the destination countries to which the metal was headed, and failure to produce the required certificates could result in penalties or a withholding of any tax refunds.

Copper exporters facing the documentary requirements claimed that the need to produce the certificates was too on...

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Zambian Government Changes Decisions, Reinstates Tax

October 30, 2013 Taxation In AfricaTaxation in Zambia

mining Tax in AustraliaLUSAKA – 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 bene...

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Stricter Mining Rules May Boost Revenues in Zambia

June 18, 2012 Taxation in Zambia

BIG TruckLUSAKA – Copper mine operators in Zambia will soon face stricter reporting rules, following the government’s suspicion that some extractors are evading their tax obligations.

In a press conference held in Lusaka on June 16th the President of Zambia Michael Sata said that copper mining operators will soon need to provide the government with greater details of their extraction and refinement processes in order to help eliminate tax evasion and prevent-under reporting of incomes by mining enterprises.

According to the President, exporters of copper currently claim that a large portion of the metal extracted in Zambia is shipped to Switzerland, however, a recent investigation showed that the data held by Swiss customs authorities does not match up to this claim...

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Zambia Hikes Mine Taxes

November 16, 2011 Taxation in Zambia

Zambia Mine TaxLUSAKA – Mining operators in Zambia are set to face a potential double blow of raised taxes, with the introduction of a new windfall tax and the raise of mineral royalty taxes.

On the 12th and 13th of November the government of Zambia announced a set of major changes to the tax treatment of the mining industry operating in the country, with newly published government budgetary plan doubling the national mineral royalty tax rate, and indications by the Minister of Commerce and Industry of Zambia Bob Sichinga revealing that the country will soon see a windfall tax on mining profits.

During an interview on the national radio, the Minister said that the government is currently investigating how to instate a new windfall tax without reducing employment levels across the mining industry...

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