Local News

MINERAL ROYALTY TAX REMOVAL DISASTER – KATELE

By SILUMESI MALUMO

FORMER Minister of Finance Katele Kalumba says changing the implementation of the Mineral Royalty Tax will have a negative impact on the country’s welfare because copper prices fluctuate on the international market.

Dr Kalumba said it will be prudent if the new dawn government had thought about the risks they have taken.

“When you take such measures you need to be aware of consequences they will come with.

Mineral Royalty Tax has been a critical instrument to collect meaningful revenue from the mines for the country’s expenditure.

“You know that they have also removed personal expenditures like user fees and this will be a burden on government and they need to have wide base of revenue,” Dr Kalumba said.

He said “the new government might have projected that copper prices will go up then tax the commodity so that enough revenue can be generated. He said copper prices fluctuate on the international market, therefore, it will be a disaster if the prices reduce unexpected.

Dr Kalumba said the tax was an important instrument which helped previous governments to generate revenue for the country’s consumption.

Back to top button