Finance Minister Alexander Chikwanda says Mining companies are uncomfortable with the new mining tax regime because they have been caught napping.
Mr Chikwanda says with the 2015 mining tax regime, government has dealt with the fraudulency that was implicit in corporate based structure were a company could perpetually capitalize on losses and end up not paying any tax.
He says government will not be persuaded to put in place tax laws in favour of individual companies in order to avoid distortion.
In a ministerial statement to Parliament today on the new mining tax regime, Mr Chikwanda says the mines and minerals development Act contains mitigation measures which holders of mining rights may wish to pursue on the perceived challenges the 2015 mining tax regime may present.
Mr Chikwanda says government is committed to promoting investment and efficiency in the mining sector.
He states that government will address policy matters pertaining to the new mining tax while the Zambia Revenue Authority will deal with operation matters.
And Mr Chikwanda says the realignment of the provisions of the Value Added Tax (VAT) Rule 18 is a clear demonstration of government’s commitment to ensuring that regulations are not onerous by supportive to investment and business development.
Mr Chikwanda says government is in the same breath confident that mining companies will remain resolute in complying with tax rules.
He explains that the realignment of the provisions of Rule 18 will ensure that mining companies and all exporters are not unduly impeded by administrative rules and in the process affecting their cash flow and operations.