Lusaka - Zambia's mining industry said on Wednesday an increase in corporate tax to 35 percent and other new tax rules will scare away investors and discourage processing to add value, and called for them to be scrapped.
Last month Zambia, Africa's number two copper producer, approved a plan to increase the corporate income tax rate on mineral processing to 35 percent from 30 percent, and it became effective this month, bringing it in line with the rate charged to non-mining companies.
Foreign mining companies in Zambia include Glencore, Barrick Gold Corp, Vedanta Resources and First Quantum Minerals.
The government also cut mineral royalty rates to 6 percent for underground mining, from 8 percent, and to 9 percent for open cast mining, from 20 percent.
However, Zambia's Chamber of Mines, an industry body representing mining companies, said in a presentation to parliament the new tax rules would hurt investor confidence.