Zambia's new mining tax regime could backfire

2015; Emerald Publishing Limited; Linguagem: Inglês

10.1108/oxan-db197632

ISSN

2633-304X

Tópico(s)

Mining and Resource Management

Resumo

Significance The new rules remove corporate tax, but hike mining royalties to 20% for open pit mines (up from 6%), and 8% for underground mines (also up from 6%). Some flexibility in the payments schedule may be permitted. Impacts The collapse of the opposition MMD's support base means business lobby funding and support is likely to shift to Hakainde Hichilema's party. Following his declared support for the PF, Rupiah Banda's moderating influence on party policy may be limited by his outsider status. The IMF will be wary of confirming a fiscal consolidation programme, given the president's short tenure and his populist platform. Lower fiscal revenues from mining may push the government to borrow further to meet its election campaign promises.

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