By ADRIAN MWANZA
MINES Minister Paul Kabuswe has said that Government would carry out an audit on mining firms that are in the habit of under declaring production figures. Mr Kabuswe said in an interview that some mines were misbehaving by giving fake figures to avoid paying the correct taxes to the government.
He said that the government had scrapped off mineral royalties to ensure that mines could be able to function properly and be more transparent. The minister said some mining firms were misbehaving by not giving the correct figures concerning production which made Government lose out in terms of revenue.
“We are going to lose out on revenue most especially that Government has put in place policies that favour the growth of such entities,” he said. And Konkola Copper Mines (KCM) Liquidator Milingo Lungu said the move by government needed to be commended because it would give mines a lifeline.
“Most firms are excited with the move by government to scrap off the mineral royalties non deductibilities because it will be a win-win situation for both parties,” he said. Meanwhile, Zambia Chamber of Mines (ZCM) president Dr Godwin Beene said the removal of the mineral royalty taxes non deductibility, was a clear indication to the world that Zambia was once again open for business. He said the budget measures announced should be seen as a step in the right direction towards full reform of the mining tax regime.
Author
