Zambia: IMF applauds tax resolve

Published Apr 1, 2015

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The International Monetary Fund(IMF) yesterday applauded Zambia’s efforts to resolve tax issues in its copper mining industry but warned that only further tightening of fiscal and monetary polices would contain the country’s large deficits. President Edgar Lungu directed Zambia’s finance and mining ministers on Wednesday to change royalties on mining firms by April 8, saying the copper-producer could consider temporarily reverting to the tax regime of 2014. The decision to increase royalties in January for open pit mines to 20 percent from 6 percent, and those for underground mines to 8 percent from 6 percent, rattled unions and mining firms in Africa’s second-largest copper producer. – Reuters

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