Zambia is on course to collect a projected $415 million from new mining taxes in 2008 following compliance by mining companies, a senior tax official said on Thursday, contradicting a top treasury official.
The new tax regime, which came into effect on April 1, increased mineral royalty to 3 percent from 0.6 percent, while corporate tax on miners rose to 30 percent from 25 percent.
Zambia also introduced a 15 percent variable profit tax on taxable income above 8 percent and a minimum of 25 percent windfall profit tax.
Zambia Revenue Authority (ZRA) commissioner-general Chriticles Mwansa said in a statement mining companies had complied with the new tax law and paid the mineral royalties at 3 percent.
Mwansa said mining companies paid the tax authority $8.4 million in May compared with the $1.4 million that they used to pay per month before the introduction of the new taxes.
“I am confident that the targeted $415 million will be collected. The compliance levels so far by the mining companies are very encouraging, hence we are extremely hopeful that the government will meet the target.
“The first payments for mineral royalty were due on May 14, 2008 following the introduction of new taxes but the bulk of the revenue will be paid in June when the first returns and payments for company income tax and other taxes are due,” Mwansa said.
Emmanuel Ngulube, permanent secretary in the Ministry of Finance, said on Monday the first money of the projected $415 million this year would start coming in June, and that a power outage would affect mine production.
Ngulube said he therefore expected the revenue to reduce.
Finance Minister Ng’andu Magande said on Wednesday Zambia was on course to achieve a targeted 1.0 million tonnes of refined copper in three years after resolving a controversy over new mining taxes with foreign investors,
Magande said all but two foreign mining firms in mineral-rich Zambia had agreed to pay the increased taxes, after initial threats of litigation in international courts.
The bigger tax bite had outraged mining firms, which said the move could discourage investment in the sector, a major employer in Zambia accounting for a large share of foreign earnings.
[REUTERS]
Two out of how many mining firms Mr. Magande? These figures are confusing, especially that we are not being told how much profits these mining companies are making.
Build dual or more carriage-ways, more bridges, new townships, get rid of shanties and do town planning of all cities with this money. And of course, build 5 new stadia, maybe FIFA would cancel RSA World Cup and bring it to Zambia, what with this savagery and unbecoming behaviour being displayed in RSA. Unfortunately, we always remain deep in sleep and do not know how to create opportunities for ourselves when an oasis of peace we are.
Now that you are on course $415million mine tax target,the govt. should reconcile with the Zambian worker on issues multiple taxes,levies and the like.Time has come for generation atleast to ‘eat from the tree MOTHER ZAMBIA.’We need to be relieved from some of these taxes.Let everyone contribute—especially the ‘investor’ who eat a bigger share.
Do something productive with that money. Thats a lot of money.
Make Zambia productive so people can come back to Zambia. They shouldn’t be forced to stay in SA where the people don’t want them due to economic situations in Zambia.
Lets set an example. Let’s develop.
Lets properly use this tax money to improve infrastructure and spend all on buying new cars
I appreciate your concerns guys but this govt aint building no schools with that loot.
MMD is broke & they will deep thr fingers in the treasury 4 2011.There r Medical bills to settle in London & Milpark clinic in Joz.
These yorkels need to get loans 2 pimp thr houses & increase thr fleet.Its all messed up,we need change urgently
Yes Yes Yes Bloggers!
yes, build a dual way carriage or four lane highway between lusaka and ndola to reduce on head on collision accidents
How much are the mining companies making in total? If the can hand over $415 million dollars in taxes alone then surely they must be making much more than that. How much is been taken out of the country?
We may be happy with $415m but I’m sure Zambia is losing billions of US dollars to these foreign mining companies. Imagine if we kept all the profits from mining, Zambia would develop almost over night.
The people of Zambia need to know how much money is been generated from our mines, can someone tell us?
This is encouraging news! I am looking forward to see that all mining companies honour us by doing the needful – ie, paying the new tax regimes – always on time.
Let us thus look at sound ways to make sure this revenue is put to improve peoples’ living standard and also provide a framework to cater for the epxanding economy.
To this end, let us for once start planning ahead – for infrastructure building and the associated peoples’ welfare – of time instead of always reacting to causes.
# 6 right on the spot!! The ‘ve already calculated how much one will take home, its so timely!!!!
#9 It’s because of *****s like you that we Africans are not progressing. Why didn’t you take over the mines when Anglo Americans left. You could be making 100% now.
Don’t think this boom is because of our sweat. It’s just because the copper prices have gone up on the world market.
I hope the country will take advantage of this situation to develop rather than thinking like a muntu like you.
#12 you are dead right! *****s like #9 want to cash in where they did not sow. This is no different from stupid shanty dwellers in SA who think that foreigner owe them a living. Can somebody tell us how much they are making, he says. How silly? When the mines performed poorly due to dis-investment and poor metal prices, where was this *****? The events in support of the commodity boom are out of reach! Get the 3% loyaty and taxes..that is it! lay your hands off! These companies report to share holders who have pumped billions in this risk-prone black african country, they gambled so don’t frustrate them. Rather ask ur govt to spend wisely,build schools,identify strategic sustainable projects
If you want, ask Mr Mwanawasa to give all Zambians US$ 100 000 from the loyalty proceedings. Better still ask him to build houses for teachers in rural areas. Or better still ask him to initiate cooperate farming schemes in Shan’gombo. If you want, you can ask him to build streets of copper, or houses made out of marbles..he he he he…
Honestly, lay your hands off the invester. Cultivate the american spirit of minding your own business!! This african mentality of entitlement is stupid! I am entitled to this and that.etc etc..leads to xenophobia, ignorance and laziness. How do the investers do it? may be ask the government to invest in mining projects owned andrun by Zambias. Start your own
6. Daka,
” The South African government’s refusal to even acknowledge the crisis in Zimbabwe has resulted in as many as three million Zimbabweans walking the streets of South Africa. ”
No it hasn’t. Witwatersrand University did a study and found the number closer to 300,000, not 3 million.
There is a lot of propaganda going on about Zimbawbe, even Tsvangirai wants to blame Robert Mugabe for the attacks in South Africa.
Also google: Special Report: Fact or Fiction? Examining
Zimbabwean Cross-Border Migration into South Africa