Action Aid Calls For Revision Of Tax Policy

Pamela Chisanga from ActionAid Zambia helps present  David Cameron with a petition, signed by 1.4 million people

Pamela Chisanga from ActionAid Zambia helps present David Cameron with a petition, signed by 1.4 million people

Action Aid Country Director Pamela Chisanga says Zambia to re-look at both Its Mining Tax Policy and Administration. Ms Chisanga said this at the ongoing mining Indaba being held at Fatmols Lodge in Ndola.

She said Zambia’s economic history had indicated that the volatility of Copper prices inevitably affected economic performance and revenues from mining activities as this depended on the performance of the mining sector.
Ms. Chisanga added that wide consultations, including proponents of the introduction of windfall tax, have argued for the tax system to be designed in a way that accommodates price booms and slumps, so as to optimally capture tax revenue during times of buoyancy, while at the same time not act as a disincentive in gloomy days.
She wondered why major investors had opposed Zambia’s measure to renegotiate its royalty rate despite a fourfold increase in the price of copper between 2000 and 2011.