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ActionAid Zambia has commended Finance Minister Alexander Chikwanda for increasing the mineral royalty tax in the 2015 National budget.
Speaking to Qfm in an interview, ActionAid Zambia Economic Justice project officer Patrick Nshindano says the increase in mineral royalty will compensate for the corporate income tax which many companies have not been paying.
Ms. Nshindano explains that the Zambia Revenue Authority (ZRA) has demonstrated their inability to collect corporate income tax from the mining sector as only two companies were paying corporate income tax which implies that many companies were not paying.
He adds that increasing the mineral royalty tax to 8 percent and 20 percent underground and open cast mining operations enable the country have more revenue which will in turn contribute to economic development.
Mr. Nshindano notes that the challenge at play currently is the lack of capacity by the country to handle aggressive tax planning by most multinational and mining companies and that the mineral royalty will take care of that.
Mr Nshindano has further advised mining companies to embrace the new tax regime and comply.
He has further urged the Zambia Revenue Authority and the government to ensure that the necessary measures are put in place to deal with mining companies that will fail to comply with the new mining tax regime.
qfm news
( Tuesday 14th October 2014 )
