Mining Taxes Boosting Revenue

August 2008 | Economic Analysis

Thanks to newly implemented mining taxes, Zambia secured the highest monthly revenue ever from the mining sector in July 2008. Revenues reached ZMK256bn, primarily due to the higher taxes, not higher production. For example, the amount paid due to the higher mineral royalty fee was ZMK26bn in July 2008, up five times from ZMK5bn, which was collected in July 2007. This is in line with our forecast for a significant increase in tax revenue from 18.4% of GDP in 2008 to 23.6% of GDP in 2009 as new mining taxes enter the budget planning process (2008 receipts are being saved

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