Green Party President and mining expert, Peter Sinkamba, has condemned government’s decision to suspend the export tax on copper concentrate, describing it as a major setback for the mining sector.
The suspension was announced yesterday by Minister of Finance and National Planning, Situmbeko Musokotwane, who stated that the move is aimed at boosting local mineral processing and attracting investment.
However, in an interview with RCV News, Mr. Sinkamba questioned the logic behind removing a revenue-generating tax at a time when the country is in need of increased fiscal inflows.
“This is one of the worst mistakes the government has made in the mining sector and removing the export tax will result in significant loss of government revenue, which will ultimately affect service delivery,” said Mr. Sinkamba.
He explained that export duties are primarily imposed to discourage the export of raw materials and to promote value addition within the country adding that eliminating such taxes, he warned, undermines that goal.
Mr. Sinkamba also expressed concern that the decision sends mixed signals to investors, saying it reflects policy inconsistency under the UPND administration.
By Christabel Kamunu
