Zambia Sees Higher Mining Tax Contributions By 2013 - Govt

Zambia's mining tax contributions are expected to increase to 1.2% of the country's gross domestic product by 2013, from the current mining ball mills in south africa0.7%, due to rising copper production and improving global copper prices, Zambia's Finance and Planning ministry said late Wednesday.

In a statement, Secretary to the treasury Likolo Ndalamei said Zambia's total tax revenue collections are poised to rise to 18% of the country's GDP by 2013, from the current 15.9%, due to a surge in copper mining operations as well as higher global metal prices. Zambia is Africa's largest copper producer. "The growth in mining revenues is premised on a projected increase in production and the continuance of favorable copper prices," he said. In 2008, Zambia introduced a new mining tax regime which introduced an 18% variable profit tax and hiked corporation taxes for mining companies to 30% from 25%. However, the new taxation regime has been opposed by copper mining companies.