Govt urged to de-criminalise small scale mining of gemstone to create employment opportunities

Former Deputy Minister of Finance and National Planning, Mbita Chitala, has called on government to de-criminalise small scale mining of gemstones in the country in order to create more jobs.

Chitala told Zambia Monitor that there was need to also provide for mechanisms for sharing production with the state at 50-50, rising to 70 percent for the state.

He said the new Dawn Administration must take several steps of not only decriminalizing gemstone mining but also abolish the policy allowing for 100 percent deduction for exploration costs, development costs and making royalties tax deductible.

“It is shameful to note that Zambia collected $313.5 million in the third quarter of 2022 and collected only $115.8 million in 2022 of first quarter of 2023 because government has decided to make royalties tax deductible at Zambia’s expense,” Chitala said.

He said Zambians must also stop thinking that employment creation and tax payments by these investors were a benefit or an advantage to the country.

Chitala added that employment and tax payments to the State were a given, and that without Zambians being employed and paying taxes, there would be no mining of the country’s base metals.

“Government should start promoting value addition and beneficiation as first republic President Kenneth Kaunda tried to do in establishing ZAMEFA which was privatized to foreign interests,” he said.

Recently, Special Advisor on Investment and Economic Affairs to President Hakainde Hichilema, Jito Kayumba, said that government was working on measures to create a strong local mining content policy to enable the country to benefit beyond taxation.

Kayumba told Journalists in Chililabombwe, on the Copperbelt Province after officiating at the unveiling of Mingomba exploration site by Kobold Metal that government wants Zambians to benefit beyond taxes and owning significant stakes in the mines.

“The Mining and Mineral Act review will enhance local mining benefits, you have seen that since coming to power, the government has been pushing for local content beyond mining supply where locals hold stakes in the mines while promoting mineral trading,” he said.

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