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CTPD calls for stronger mining policies

The Centre for Trade Policy and Development (CTPD) says the increased copper prices on the international market did not translate to increased revenue for Zambia.
CTPD Executive Director Isaac Mwaipopo says there is need for a mechanism in the mining tax policy that can be used to collect more revenue during times when copper prices are higher on the market.
He says his organization also learned that during the bursts, government tax revenue reduced due to lower declared profits in the mining sector causing Zambia to lose out while mining firms win during booms.
This is according to an Executive Summary Analysis of a policy brief aimed at understanding the performance of the mining sector in terms of revenue contribution to the central government over a three year period of 2014 to 2017.
The analysis found that the Zambian Tax base is increasingly becoming diversified away from the mining sector and international copper prices do not have a medium relationship with either mining tax revenue or total tax revenue.
Mr. Mwaipopo has therefore recommended that the Zambia Revenue Authority should continue diversifying the Tax base in order to reduce sort term tax revenue losses due to fluctuations in mining sector taxes.
He adds that Diversification should be encouraged both within the mining sector, towards other minerals and extractives and outside the mining sector towards wholesale and manufacturing sectors.

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