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Zambia may cut mining taxes

Jan 16 2009 17:57

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Lusaka - Zambia's President Rupiah Banda said on Friday the government could cut mining taxes after numerous complaints and threats of litigation from foreign investors in the country's struggling mining industry.

Banda said the government was currently in talks with the owners of the mines to see the best way to mitigate the impact on mining brought about by the effects of higher taxes introduced in 2008, and the low global metals prices.

"The government is currently engaged with the industry to make sure that a beneficial financial environment exists for both the government and investors. My government will do all it can to protect jobs and to safeguard the industry for the future," Banda said.

"We must ensure that we do not kill the goose that lays the golden egg. There is little point in taking in a few million dollars in tax if thousands of jobs are lost as a result."

- Reuters

 
 
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