GOVT URGED TO USE 2024 BUDGET TO REVITALIZE ZAMBIA’S MINING SECTOR
The Centre for Trade Policy and Development -CTPD- is urging government to use the 2024 national budget as a tool to revitalize Zambia’s mining sector.
CTPD is concerned with the slow responsiveness of the mining sector to the tax incentives it was accorded in the 2022 and 2023 national budgets and the low productivity in the sector which has affected tax revenue collection from the sector.
As of the first quarter of 2023, the mining sector witnessed a 24.37 percent drop in copper output, recording 143,640 metric tons compared to 189,953 metric tons in the same period in 2022.
In this vein, CTPD Lead Researcher -Extractives Elijah Mumba is urging government in the next year’s budget to increase funding to the geological survey department to encourage crafting of long-term sound decisions in the mining sector and encourage long term investment and allocate funds for training and skills development programs within the mining sector to contribute to a more capable workforce, driving innovation, efficiency, and productivity among others.
Mr. Mumba notes that despite favorable tax adjustments for the sector in 2022 and 2023 budgets – including reducing Company Income Tax -CIT-from 35 percent to 30 percent and allowing mineral royalty deductions for CIT calculations, results have not been good enough.