[miningmx.com] – ZAMBIA may cut national spending if miners working in its borders take up an offer to defer royalty payments owing to financial distress, said Bloomberg News citing Fredson Yamba, secretary to the Treasury.
Zambia removed corporate income tax for miners and raised royalties from 6% across the board to 20% for open pit mines and 8% for underground operations. It added, however, that mines facing financial distress from the royalties, could defer payments.
However, Yamba said this could result in spending cuts for Zambia which has targeted a 4.6% budget deficit this year.
“Immediately then you would also need to be looking at the expenditure’ to meet the deficit target, Yamba told Bloomberg News. “You would need to do a review of the budget and take it to cabinet and scale down on certain expenditures,’ he said.
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