Zambia’s President Edgar Lungu said on Friday that he will go ahead with a new non-refundable sales tax in place of Value Added Tax (VAT), despite criticism from mining companies.
Africa’s second-biggest copper producer is introducing the tax change as part of a plan to keep a greater share of mineral resource profits for the country and tackle its debt despite criticism that it is deterring new investment.
Lungu said companies that don’t like the tax regime should leave the country. He said companies such as Vedanta Resources’ Konkola Copper Mines (KCM) and Glencore’s Mopani Copper Mines (MCM) were laying off workers and blaming the tax changes.
Mopani plans to close two shafts at its Nkana mine in Kitwe, the company said last week, a move that union sources said could affect more than 2,000 workers.
