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By ZamChro Correspondent

Caritas Zambia economic justice programme officer Edmond Kangamungazi last week urged Government to increase revenue and tax transparency from the mines.

Mr Kangamungazi said this in Lusaka when he made a presentation at a one-day conference on “Exploiting Our Natural Resources”.

He said there was need to increase tax and royalty rates charged on sales value and mining profits where these are too low.

He said last year Government projected an estimated revenue of K502.1 billion under windfall tax but only K126.1 billion was collected, registering a deficit of K376 billion.

He said company tax projected to be collected was K300.5 billion but only K22 billion was collected.

Mr Kangamungazi said mining taxes are important because mineral extraction was not found in all towns.
He said, therefore, that tax revenue spent through the budget or other mechanisms is a key benefit of mining to mineral rich societies and economies.

“Mining is always a cost to the environment and surrounding communities. Communities and ecosystems around mining activity face enormous risks. The tax regime should assist Government to help compensate and safeguard communities and the environment around mining areas, ’’ he said.

Mr Kangamungazi said mining companies cannot provide communities with the basic services to which they are entitled in an efficient or equitable way.

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