By CHARITY MOONGA –

THE Chamber of Mines of Zambia (CMZ) has asked the Government to reconsider the new mining tax regime proposed in the 2015 National Budget.
The new mining tax regime will see the introduction of eight per cent mineral royalty tax on underground mining and 20 per cent on open cast mining.
CMZ president Jackson Sikamo told the expanded parliamentary committee on estimates that the new mining tax regime was not progressive and would lead to the closure of some mining companies.
Mr Sikamo urged the Government to reverse the proposed tax regime as it would affect employment and Government revenue in the country.
Zambia is currently among the countries with the highest effective tax rates and increasing taxes would greatly affect existing mines and would-be investors in the mining industry.
So far more than US$12 billion has been pumped into the mining sector and more than 150,000 jobs created, hence the importance of keeping the country attractive for mining investment.
Zambia should also re-consider the introduction of VAT Rule number 18, as it was impractical and impossible for the mining companies to meet.
The mining companies urged the Government to sort out the VAT issue expeditiously, as failure to reverse it would have an impact on the mining companies and total Government revenue collection.
The expanded committee of estimates, chaired by Bweengwa UPND MP Highvie Hamududu, took the mines body to task over its members’ ‘quick to cry’ attitude every time the Government suggested increases in the mining tax regime.
Members of the expanded committee on estimates are MMD Ikelengi MP Elijah Muchima, PF Kabwata MP Given Lubinda, Kabompo West UPND MP Ambrose Lufuma, Moomba UPND MP Vitalis Mooya, Lukashya PF MP Elfreda Kansembe, Nchelenge PF MP Raymond Mpundu and Lukulu East MP Christopher Kalila.
Others are Keembe’s Ronnie Shikapwasha, Siavonga UPND MP Kennedy Hamududu, Kasempa MP Kabinga Pande, Mkaika MP David Phiri, Solwezi West UPND MP Villie Lombanya, Pambashe MP Ronald Chitotela, UPND MP Mufalali Likando, Namwala UPND MP Moono Lubezhi, Chipangali MMD MP Vincent Mwale and Lumezi MMD MP Isaac Banda.