.LUNGU

By XAVIER MANCHISHI –

CABINET has approved changes to the mineral royalty tax regime.
President Edgar Lungu has since directed ministers of Mines and Finance to present the approved changes at next Monday’s Cabinet meeting.
President Lungu has also directed that the technical committee appointed to interrogate the challenges that arose from the mineral royalty tax regime continues with consultations with stakeholders.
Consultations would ensure a robust and predictable mining tax regime which will be linked to the medium term expenditure framework.
The new changes follow extensive consultations with the mining industry in light of significant changes in the fundamental assumptions upon which the law was based.
President Lungu hoped the changes would promptly eliminate market anxieties in the mining sector and forestall potential instability.
Special Assistant to the President for Press and Public Relations Amos Chanda said the administrative and legislative procedures to effect the changes would be completed before the next Cabinet meeting.
Mr Chanda said the changes would have revenue implications, given the fact that the basic assumptions in the budget regarding the price of copper and production have changed downwards.
“The changes to the mineral royalty tax regime will have revenue implications requiring rationalisation of expenditure which the minister of Finance has been directed to present to Parliament,” Mr Chanda said during a Press briefing at State House last night.
The budget approved by Parliament was based on the assumption that the price would not drop significantly.
The price of copper on the international market dropped from US$ 6,780 to US$5,665.
Production which was also assumed to stay at the peak of 959,696 tonnes has since dropped to 839, 000.
Mr Chanda, who was flanked by Special Assistant to the President for Economic and Development Affairs Hibeene Mwiinga, said other details would be availed after next Monday’s Cabinet meeting.