[miningmx.com] — Zambia plans to tighten its grip on the government’s share of profits made at the country’s mines, boosting tax revenue and ensuring a more level playing field for Chinese and other investors, Reuters reported on Friday.
Investors in miners operating in Zambia have fretted over possible increases in taxes under a government elected last year, against the backdrop of a surge of resource nationalism across Africa.
But Vice-President Guy Scott said there were no plans to change the tax code, and that making sure mining companies complied with the existing rules would boost income.
“We are very happy with the formula at the moment. We are not arguing about the taxation formula … That’s not where the concern is. The concern is compliance,” Reuters quoted Scott.
“There are all these countries that are known as offshore banking or financial services centres. They get their money from somewhere, and we suspect some of it may be coming from Zambia.
“We have backed off a windfall tax which at one stage was brought in … We have a higher royalty, and a progressive profits tax and the interest is not to change the formula but … to enforce compliance,” he said.
