The Zambia Chamber of Mines has proposed the reduction for the rate of With-Holding Tax from 20% to 10%, in the 2025 national budget, on essential foreign exploration Consultants and exploration Contractors and expedite work permitting.
According to the issued budget proposal, the Chamber of Mines says this is necessary to secure cutting edge technologies required to expedite exploration and grow reserves while diversifying the geographical spread and minerals basket of battery minerals and gold mining in Zambia
The Chamber of Mines has also proposed either the reduction or the abolishment of importation duties and VAT on all exploration equipment and vehicles for bonafide exploration companies.
The statement says the removal of import duties on exploration equipment is to attain limited loss in revenue for the state compared to the investment gains from expedited mineral discovery in the medium term.
And the Chamber of Mines has suggested that the 90 day rule for VAT be reverted to pre-September 2024 application, so as to not cut short time to recover VAT.
The statement says the change in the 90-day rule from invoice period to invoice date has effectively reduced the 90 day rule significantly and in some instances to 45 days having unintended practical impact VAT claimability.
By Eva Hatontola
