By KENNEDY MUPESENI –

THE World Bank has urged the technical team instituted by President Edgar Lungu to effect changes to the 2015 mineral royalty tax to come up with a win-win tax regime that will benefit the mining companies and Government.
Country director for Zambia, Malawi and Mozambique Kundhavi Kadiresan said there was need for a win-win tax regime that would benefit all.
“It is our hope that whatever amendments that will be made, the mineral royalty tax will result in a win-win scenario where the country and the mining houses get economic benefits,” Dr Kadiresan said in an interview at the week-end.
She said it was encouraging that the Government had listened to complaints by the stakeholders in the mining sector.
Dr Kadiresan said the Bank would not want to see a situation where mining companies were pulling out from Zambia, judging by their contribution to economic development.
“We are keenly waiting for the outcome and for now commenting since we are part of the process will jeopardise the process,” she said.
Last week, President Lungu directed the Ministers of Finance and Mines, as well as that of Energy and Water Development to effect changes to the contentious 2015 mineral royalty tax.
In the letters to the two ministers, he said after receiving submissions from individual mining companies and the chamber of mines, he noted that the new tax regime poses a challenge to some mining houses.
The President also noted that some mines were high-cost while others were low-cost operation adding that the mining industry had been affected by unstable copper prices on the international market.
The unfavourable economic trends globally had been mainly on account of weak global demand for copper.
“I wish to take this opportunity to reiterate my Government’s resolve to continue putting dialogue at the centre of our Governance system and dialogue between my Government and the mining houses will continue,” the President said.