ActionAid Zambia, branch of a global movement of people working to further human rights and fight poverty, said Friday it was saddened to see the Zambian government yielding to industry pressure through the removal of 7.5 percent duty on importation of copper concentrates.
The move was not welcome, said the organization, arguing that it undermined efforts of having a stable mining tax regime because the duty on copper concentrates was meant to encourage value addition locally and envisioned to contribute towards creation of jobs.
“As ActionAid Zambia, we are of the considered view that the Government through the Minister of Finance should tell the nation where they are going to get the forgone revenue. We believe this is not in good faith as it undermines revenue collection from the country’s endowment of natural resources in the mining sector,” said Nalucha Nganga-Ziba, ActionAid country director.
According to the official, it was worrying that though government has embarked on an economic recovery plan that would require sufficient revenues to finance, on the other hand government was backtracking on revenue collection.
“ActionAid Zambia therefore calls on the Minister of Finance to show policy consistency by not reversing measures only when mining companies demand or complain,” said Nganga-Ziba.
But the Zambia Chamber of Mines, a body representing mining and allied industries in the country, has welcomed the duty removal.
Chamber of Mines acting chief executive officer Talent Ng’andwe said Friday that the removal of import duty on copper concentrates would help in stabilizing independent smelters and finished copper output, in addition to employment and contributions to government revenue.
