MUHABI LUNGU CALLS FOR A REVIEW OF ZAMBIAS VALUE ADDED TAX SYSTEM TO CURB EXPLOITATION BY MINING FIRMS
By Tellah Hazinji
Zambia’s Former High Commissioner to the Democratic Republic of Congo, Muhabi Lungu, says there is a need for the country to review its Value Added Tax-VAT system to ensure equitable sharing of revenue from its resources as opposed to the current system that favours investors.
According to the Zambia Revenue Authority – ZRA report, VAT refunds to the mining and quarrying sector reached almost K1.2 Billion equivalent to about USD 45 Million for the month of April 2024, a situation that resulted into about 70% of the tax revenue collected from the sector through mining company income tax and mineral royalty being claimed back by the mining firms.
In an interview with Phoenix News, Mr. Lungu who is also the Zambia We Want Party Member, says this development is unacceptable and unfair to the country which is hardly benefiting from its mineral resource, especially that the mining companies already have incentives.
Mr. Lungu notes that Zambia is the smallest shareholder of its own resources and that currently, revenue from the mining sector is not equitable as the money is externalized.
And Mr. Lungu has charged that the country should be getting a lot more revenue from the current high copper prices on the international market which stands at around 10,000 dollars per tonne.
PHOENIX NEWS
