.Lungu

By KENNEDY MUPESENI –

THE reversing of the new mining tax regime will have a negative impact on project implementation, the Zambia Council for Social Development (ZCSD) has said.
President Edgar Lungu recently directed the ministers of Finance and Mines, Energy and Water Development to review the new mining tax regime and come up with a beneficial policy for both the Government and mine owners.
ZCSD executive director Lewis Mwape said the revision would have a serious fiscal stress on the economy which would further affect the implementation of various national projects.
“This is going to have a serious impact on project implementation programmes which will in the long-run slow down the country’s economic development programme,” Mr Mwape said.
“We feel the National Budget is under siege by mining investors in the country. They were concerned about the VAT Rule 18 and the Government has since addressed this issue and they have now gone to demand for more tax relief which is not fare,” he said.
He expected that the supplementary budget for 2015 to exceed the normal level which would further create a budget deficit.
He called for policy consistency on the part of the Government so as to instil confidence in the economy.
He also called on Zambians to avoid negative talk about the current state of the economy.
He said negative comments had the capacity to reverse the country’s economic gains and reduce investor confidence.
There was need to work together to build the country’s economy and create more jobs.
He said it was the duty of every citizen to see the country reduce poverty levels hence the need to ensure that unity of purpose was promoted.