Zambia: Mineral royalty hike in pipeline

ZAMBIA was considering raising its mineral royalty rate and removing corporate tax for mining companies, a person with knowledge of the matter said on Friday. The government of Africa’s second-biggest copper producer might raise the 6 percent royalty rate charged on sales as it would be simpler to administer and more transparent than corporate income taxes, the person said, asking not to be identified as a decision had not been made yet. Zambia doubled mineral royalties to the current level in 2011. Finance Minister Alexander Chikwanda might provide clarity on the royalties plan in his annual budget speech on Friday. – Bloomberg