KCM sues ZRA over K3.2 billion


VENDATA Resources’ Zambian unit is suing the Zambia Revenue Authority over a K3.2 billion (US$586 million) tax charge relating to exports of copper cathode.
According to Bloomberg, Konkola Copper Mines wants the Lusaka High Court to quash the Zambia Revenue Authority’s decision to charge a 16 percent value-added tax on the exports from January 2011 to March this year, according to court papers.
Konkola also wants the court to reverse the authority’s decision to levy the tax from July.
On October 28, President Sata revoked Statutory Instrument (SI) No. 89 of 2013, which lifted a 10 percent export duty and allowed companies like KCM and First Quantum Minerals, among others, to export copper concentrate abroad.
Zambia depends on copper exports for 80 percent of its foreign currency earnings while the mining sector has always been the second largest employer after the public service in the country.
Copper production is expected to hit an all-time high of about 1.5 million metric tonnes by 2015 as old mines are upgraded and new ones come on board such as the Kalumbila being dug in North-Western Province.  –