The Zambian Government is planning to review the country's mining taxes as the Zambia Revenue Authority (ZRA) did not collect enough tax from mining firms in 2013, the country's finance minister Alexander Chikwanda has said.
Chikwanda urged the government to review the laws, as mining contributed only 18.8% to the country's total revenues last year. The minister was quoted by Reuters as saying that the contribution of the mining sector is inadequate.
"It is only fit and proper that the country gets optimal revenue from its depleting resources," Chikwanda said.
"There will be an appropriate and opportune time for parliament to review the existing legislation."
It is alleged that mining companies took advantage of ZRA's shortcomings in order to evade tax payments, citing technicalities.
Chikwanda was quoted by Mining News as saying that the loss of tax monies is affecting the government's ability to deliver on development projects for Zambians.
Meanwhile, the Zambian Government is also planning to revise the country's Mines and Minerals Development Act, which is aimed at monitoring and regulating the mining sector to accelerate growth and ensure higher benefits from the industry.
Speaking at the official opening of the third Zambia Alternative Mining Indaba (ZAMI) at Fatmols Lodge, Mines, Energy and Water Development deputy minister Richard Musukwa said that revision of the act is also intended to bring the policy in line with international best practices, so that Zambia can continue to be a preferred destination for investment.
"Significant progress has been made in revising the Mines and Minerals Development Act Number 7 of 2008 that draws on the vision 2030 which provides the blueprint for achieving accelerated growth aimed at raising the standards of the people of Zambia," Musukwa said.