GRZ Should Increase Mining Tax

GRZ Should Increase Mining Tax.

A CONSORTIUM of civil society organisations has proposed that Government should increase mining tax ceiling from six percent to eight percent to ensure a fair share of revenue collection.

Recently, Government proposed to implement three percent and six percent bands as the floor and ceiling tax rates pegged to the value of the mineral on the London Metal Exchange.

Speaking on behalf of the consortium recently, Caritas Zambia programme specialist for economic and social accountability Edmond Kangamungazi said once the tax is increased, it will raise government earnings.

“ We are asking Government to increase shifting mining ceiling from six percent to eight percent in the 2017 national budget,” Mr Kangamungazi said.

He also said the increase in the tax ceiling will provide stability by reducing the need for multiple changes in mining taxation which sway depending on how mineral prices fluctuate.

Mr Kangamungazi also called on Government to reduce customs duty on generators, gas stoves, solar panels and all accessories to enable low- income families to have access to alternative sources of energy and reduce dependency on charcoal.

He, however, appealed to Government to prioritise and implement expansion of electricity generation as well as investing in other sources of clean energy.

He said this will contribute to the gross domestic product and real growth as Zambians in the informal sector running small businesses such as welding and blockmaking survive.

Meanwhile, the CSOs have called on Government to prioritise value addition to Zambia’s raw materials as this has potential to trigger industrialisation, employment opportunities for citizens and growth that has direct impact on the economy.

“ Each year preparations and implementation of the national budget presents a new opportunity for the government to promote structural equality, remedy past injustices and provide a better life for the poor,” he said.

The proposal was submitted by the Jesuit Centre for Theological Reflection, Centre for Trade Policy and Development and Caritas Zambia.

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