Zambia minister says payment of mining royalties can be deferred

by Reuters 0

Zambia's commerce minister said on Tuesday that payment of mining royalties, which Zambia recently increased, can be deferred.

This is until companies have sufficient cashflow if they are not in a position to pay immediately.

(READ MORE: Indaba digs for solutions for the mining sector)

Zambia’s government said last year that it would scrap a corporate income tax of 30 per cent while increasing mining royalties for companies operating in Africa’s second-largest producer of copper.

Since the tax came into effect this year, however, Zambia’s new president Edgar Lungu has signalled that the country might revise the increase.

(READ MORE: Zimbabwe gold mines face collapse on weak bullion price: mining group)

“If your company is unable to pay the tax for any reason, we are ready, willing and able to defer your liability. We won’t put away the liability, but we are happy to defer until a point in the future when your cashflows allow you to pay your tax,” Margaret Mwanakatwe told delegates at the Mining Indaba conference.