Zambia scraps sales tax plan in concession to miners
LUSAKA – Zambia will not replace its value-added tax (VAT) with a non-refundable sales tax, Finance Minister Bwalya Ng'andu said on Friday, a major concession to mining companies that fiercely opposed the proposal.
Zambia, Africa's second-largest copper producer, is grappling with high debt levels and the effects of a severe regional drought which has depressed economic growth.
"Government has decided to maintain the Value Added Tax, but address the compliance and administrative challenges," Ng'andu said in a budget speech.
Since being appointed in July, Ng'andu has sought to mend fences with the mining industry, after relations soured over proposed tax changes and a dispute over Vedanta Resources' Konkola Copper Mines.
The minister said government would also remove a tax on capital equipment and machinery for mines, and reduce the capital allowance claimed by mining companies for capital expenditure to 20% from 25%.
Zambia would, however, limit VAT claims on electricity by mining companies to 80% from 100%, he said.
Presenting a 106-billion kwacha ($8.1-billion) budget, Ng'andu said he would limit Zambia's fiscal deficit to 5.5% of GDP in 2020 from 6.5% this year.
To ensure debt is maintained within sustainable levels, the government would slow down debt accumulation, postpone or cancel some undisbursed loans and cease issuance of government guarantees, Ng'andu said.
Zambia is targeting gross domestic product growth of at least 3% next year from an estimated 2% this year, after a drought affected crop production and electricity generation at hydropower plants.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Design, Construction and Maintenance of Site Erected, Welded Bulk Storage Tanks for the Petrochemical, LNG, Ammonia and Sustainable fuel Sectors.
VISIT SHOWROOM
For over 15 years, Lilak Aluminium, a trusted leader in architectural extrusion supply, has delivered excellence to businesses like yours.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
