JOIN DRIVERN TAXI AS PARTNER DRIVER TODAY!
At its 7th Special Meeting held this morning, Cabinet deliberated
on the proposals to revise the 2015 taxation regime for the mining sector. Cabinet approved the following measures:
i. Mineral royalty tax rate for open cast mining and underground mining operations will be
pegged at 9 percent;
ii. Corporate income tax on income earned from mining operations will be 30 percent;
iii. Corporate income tax on income earned from mineral processing will be 35 percent;
iv. Variable profit tax on income earned from mining operations will be 15 percent when taxable
income exceeds 8 percent of the gross sales; and
v. Deduction of tax losses carried forward to be limited to 50 percent of taxable profits;
vi. Stiffening of penalties for tax offenders; and
vii. Zambia Revenue Authority will introduce stringent enforcement mechanisms to effectively
monitor mining activities and ensure greater transparency among mining companies when
reporting revenue and expenditure.
In order to implement today’s Cabinet decision, Government will undertake all the necessary
administrative and legislative measures rapidly. Once the Bill has been approved by Parliament, the
effective implementation date will be 1st July 2015 so that there is a logical sequencing in the merging
of two tax regimes in one fiscal year.
Cabinet has stressed that the approved mining taxation regime will bring about the desired stability,
predictability, consistency and transparency in the mining sector. Government is planning to link
mining taxation to the Medium Term Expenditure Framework to ensure greater stability and
predictability in the sector.
And Cabinet deliberated on the unfortunate situation regarding the outbreak of xenophobic violence in
South Africa. Following last week’s Press Release on the regrettable xenophobic violence in the
Republic of South Africa, the Government of the Republic of Zambia would like to reassure the public
that the welfare of Zambian nationals living in, and travelling to the Republic of South Africa remains
one of top priority during this period.
The Zambian Mission in Pretoria continues to closely monitor the situation in South Africa and to date,
no Zambian national living in South Africa has been reported to have been victim of these unfortunate
attacks.
The Zambian public is therefore assured that Government, through the Zambian High Commission in
Pretoria, will continue to maintain high vigil on the state of affairs in South Africa, which is a matter of
great concern to all members of the SADC region, and the continent as a whole. To this effect, His
Excellency President Edgar Chagwa Lungu has continued to consult with His Excellency President
Robert G. Mugabe, in his capacity as the Chairperson of both SADC and AU as well as the leadership
of the Government of the Republic of South Africa. Zambia is confident that the intervention under the
leadership of President Jacob Zuma will soon bring the attacks to an end. Once again, all Zambians
living in South Africa have been reminded to exercise caution in their daily activities and to continue to
avoid those areas that are affected by xenophobic attacks.
Issued by:
Hon. Vincent Mwale
ACTING CHIEF GOVERNMENT SPOKESPERSON
(MINISTER OF YOUTH AND SPORT)
