.CHIKWANDA

By JAMES KUNDA –
THE Chamber of Mines of Zambia (CMZ) has said Government is taking  the right path by its willingness to continue consultations with the private sector towards developing a regulatory environment that supports increased foreign direct investments.
CMZ president Emmanuel Mutati said in a statement that this will enable the mining sector to contribute towards increasing employment and economic opportunities in the country.
Finance Minister Alexander Chikwanda last week, announced the revocation of SIs 33 of 2012 and 55 of 2013 in a move to salvage the depreciation trend of the Kwacha.
The SI 33 was a policy that prohibited the quoting and payment of goods and services in foreign currencies locally, while SI 55 compelled the Bank of Zambia to monitor inflows, outflows and international transactions.
Meanwhile, First Quantum Minerals (FQM) has said the removal of the two SIs should be complemented by the zero-rating for Value Added Tax (VAT) on resource exports.
FQM spokes person John Gladston said in response to a press query that the (VAT) is also causing distortion in business and a slowdown in trade.
“FQM commends the Minister of Finance for the withdrawal of SIs 33 and 55. Although these SIs were very well intentioned, their implementation introduced enormous bureaucratic burdens and began causing detrimental distortions in business flows,” Mr Gladston said.
Mr Gladston said it should not be overlooked that the SIs also placed a heavy compliance burden on both the Zambia Revenue Authority (ZRA) and Bank of Zambia (BoZ).
“Businesses will welcome this release, but for the full benefit to accrue, the ZRA must also drop the VAT on resource exports which are zero-rated in most countries.
“This levy is also causing distortions in business and a slowdown in trade and until that happens, the full benefit of the withdrawal of the SIs 33 and 55 will not be realised,” he said.