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ONLY 2 MINING COMPANIES OUT OF 12 DECLARE PROFITS-ZRA CHIEF

Zeri

Zambia Revenue Authority (ZRA) Commisssioner General Kingsley Chanda

ZAMBIA Revenue Authority (ZRA) has disclosed that only two mining company’s out of 12 major corporations have been declaring profits for over a decade.

Speaking during a Deloitte Sales Tax discussion, ZRA Commissioner General Kingsley Chanda said Chibuluma Copper Mines and Kansanshi Copper Mine are the only two companies that have been declaring profits.

“Some of the mining company have been declaring losses for the last 15 years and it is okay to them,” he said.

“When one analyses the transitions of most mining firms, their losses arise from capital allowances claim and hired or contracted services-where the owners of the mine is different.”

Chanda said the personnel tasked to employ workers in the mining sector usually raise huge invoices and charge Value Added Tax (VAT) for the services resulting in losses by the mines.

He said the other way in which mines are allegedly losing revenue is through payments of services provided by parents companies.

“When the invoices are issued by mining companies, they would project a loss in their financial statement. This is not fair because every kilometer of copper or metal taken out of the ground does not grow the following day-it’s not grass,” he said.

Chanda said that Zambia will only benefit from the mines if the mining companies contribute equitably to the company.

Meanwhile, Mines and Mineral Development Permanent Secretary Paul Chanda said government has taken remedial measures by introducing new mining tax regime in the 2019 budget.

“There will be no more VAT refunds, more loyalty tax payments and no more deductibility of royalty when calculating profits,” he said.

Chanda said the introduction of a new mining regime will result in companies making profits unlike the way the situation has been for the last decade.

 

 


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2 companies declare profits out of 12 zra chief