Zambia’s cabinet approves introduction of bill to restructure mineral royalty tax regime

Zambia’s cabinet has approved the introduction of a bill in the parliament aimed at restructuring the mineral royalty tax regime, a government spokesperson said on Thursday.

Chief Government Spokesperson Chushi Kasanda said the cabinet approved the publication and introduction of the mines and minerals amendment bill in the parliament to restructure the taxation of the mineral royalty during its sitting on Nov. 14, 2022.

“Currently, the mineral royalty regime, with respect to copper, does not support a conducive environment that attracts investment in the mining sector; therefore, there is a need to restructure the mineral royalty regime with respect to copper,” she said in a statement.

During the presentation of the 2023 national budget, Minister of Finance and National Planning Situmbeko Musokotwane proposed restructuring the mineral royalty regime to attract more investment in the mining sector.

He said the country’s mineral production has stagnated at around 800,000 tons per year in the past five years amid an unfavorable investment climate, particularly frequent arbitrary changes in taxation.

Zambia, Africa’s second-largest copper producer, is targeting to increase production to 3 million tons a year in the next ten years.

Source: newsghana.com.gh