Musokotwane Clarifies Taxes on Precious Minerals
By Mary Kachepa
Finance and National Planning Minister, Situmbeko Musokotwane, has clarified that not all taxes have been suspended on precious minerals.
Dr. Musokotwane says a six percent mineral royalty tax is still being paid on precious minerals.
He says the 15 percent export tax has been reversed to encourage exports because Zambia needs increased foreign exchange inflows to address the instability and depreciation of the Kwacha.
Dr. Musokotwane was speaking during an online conversation on the suspension of export duty on precious metals and stones and its impact on the economy and livelihoods.
He further said Zambia actually gets more from the mineral royalty because countries like Brazil get a two percent tax on precious minerals.
Meanwhile, Dr. Musokotwane said the expansion in copper production will increase foreign exchange inflows and help to bring down the cost of living.
Dr. Musokotwane said the depreciation of the Kwacha and reduced foreign exchange inflows is one of the reasons that pushed the cost of living up.
He further said the drought and reduced electricity availability are other factors that caused the cost of living to rise.
