GOVERNMENT has announced plans to improve the mining sector, aiming to increase production and tax collection further enhance the economy and provide employment.
Speaking during an interview on Prime TV yesterday, Finance Minister Situmbeko Musokotwane emphasised tackling tax evasion, particularly by private mining companies.
Dr Musokotwane said Government will focus on creating a more productive mining environment to boost output.
This strategy aims to generate more jobs and increase government revenue through higher taxes paid by mining companies.
Zambia recently managed to restructure US$ 3 billion of its debt with Eurobond holders, freeing up resources for investment in the mining sector.
Now, Government’s goal is to increase copper production to 3 million tonnes, following the example of Congo’s successful industry growth through investment.
“Production in mines should not be stagnant. It simply means if production is stagnant then taxation will also be stagnant.”
Once there is high production in the mines then more jobs will be created and more taxes will be paid,” he said
Pointing at the debt restructuring agreement, Musokotwane added the agreement between Zambia and its bondholders enables Zambia to use some of its resources to pump into the mining sector in order to achieve its objective.
“With more investment made into the mining sector, Zambia is able to upscale its production to 3 million tonnes.”
“It is possible. Congo, 12 years ago used to produce only 400 tonnes of copper and today it produces 2.8 million tonnes of copper, why? Because they have the money to pay for what is needed,” Dr Musokotwane added.
By Elesani Phiri
Kalemba April 3, 2024
