In the middle of a panel discussion dubbed ‘Zambia as a battery metal supplier:- What is the government doing to increase supply?’ Mines Minister Honorable Musukwa passed the relay button to his colleague to address a query on sales tax.
Finance Minister in Africa’s second largest copper producer Zambia, Honorable Margaret Mwanakatwe on 06 Feb urged mining investors not to close down operations as she counseled them on sales tax. Zambia has proposed a mining tax regime for 2019 which will see the red metal producer not only hike mineral royalty taxes by 1.5%, but will switch to sales tax system from valued added tax on 01 April this year.
We have constantly found ourselves in a net refund position and it is not sustainable hence to decision to move onto General Sales Tax (GST) system.
Zambia’s Finance Minister Margaret Mwanakatwe
Mwanakatwe advised investors that in the month of February she would share with the public a document on how GST would work. She said her ministry will employ best practice and policy before communicating back to stakeholders. Zambia has done its homework on how GST is working for Australia, India, USA and Malaysia.
“I was looking at the draft bill which is almost ready. Let us work together to make it work, you do not have to close down,” MinFin Minister said.
