27 Jun 2023
Zambia is hosting a global conference focused on mining sector taxation, organised by the African Tax Administration Forum and the Zambia Revenue Authority (ZRA).
The government has stated there needs to be a balance between attracting investment within the sector and making sure organisations pay their fair share of tax.
Several government officials, civil society organisations and experts from across the globe are attending this Global Conference on the Future of Resource Taxation.
Kicking off the conference, Zambia's minister of finance and national planning, Situmbeko Musokotwane, stressed how mining is a key part of the global economy, playing a crucial role in shaping nations, fuelling economic growth and promoting sustainable development.
“As we gather today, I would like us to recognise the importance of striking a delicate balance between promoting investments and ensuring a fair and equitable taxation framework that benefits both the industry and the societies where mineral resources are found,” he commented.
The minister went on to say that mining taxation presents numerous challenges due to the complex nature of the industry and the characteristics of mining operations. Some of these challenges include insufficient transparency, complicated fiscal regimes, commodity price volatility and tax base erosion.
Musokotwane said a comprehensive approach is required involving strong tax legislation, monitoring, efficient enforcement and global cooperation to tackle tax avoidance.
He urged those present at the conference to focus on innovative strategies, share best practices and implement policies to promote responsible and sustainable mining practices around the world.
Furthermore, ZRA commissioner general Dingani Banda said the shifting of mining taxation for the next transition is a unique chance to encourage sustainable development.
He added that countries also need to deal with the difficulties surrounding tax regime adaption and tax administration practices to move in tandem with the evolving dynamics of the mining industry.