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The Zambia Chamber of Mines (ZCM) has proposed a wide range of proposals meant to attract investment in the mining sector.
Among the proposals made included the abolishment of importation duties and Value Added Tax (VAT) on all exploration equipment and vehicles.
Other proposed interventions included increasing loss-carry forward to 20 years from 10 years and introduction of a 15 percent exploration tax credit on grassroots expenses for locally operating miners.
Additionally, ZCM proposed halving the rate of withholding tax rate for non-resident investors to 10 percent from 20 percent and from 15 percent to 7.5 percent for local investors on mining royalties for rare earths, emeralds, copper, manganese, cobalt and lithium, among others.
These proposals were made by the ZCM Chief Executive Officer, Sokwani Chilembo, in Lusaka at the 2025-2027 Medium Term Budget Plan & 2025 National Budget Consultations in Lusaka.
On reviewing or abolishing importation duties and VAT on all exploration equipment and vehicles etc for bona fide exploration companies, Chilembo noted that this was required.
He noted that this move would have limited loss in revenue for the state compared to the investment gains from expedited mineral discovery in the medium term.
On halving the rate of withholding tax rate for non-resident investors, Chilembo explained that this was part of improving competitiveness.
He expressed optimism that this move would avail Zambian explorers and miners more financing options from offshore and institutional investors. Chilembo also proposed increasing loss carry forward to 20 years from 10 years.
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