A flurry of articles knocking round signalling that the government is indeed pressing ahead with reversing the current mining fiscal regime. The Financial Times and Bloomberg among others. It won't be long before we find out.
A reduction in corporation tax would benefit mining companies as it would reduce tax on their profit. A reduction in windfall tax would not benefit them because prices are already below where the windfall tax would be triggered (unless of course the mining companies view future windfalls if prices rise as an offset against current operating losses).
Are other countries doing the same for their mining industries. I have in mind Canada, Australia, Kazakhstan, South Africa, Namibia, USA, Ghana, Russia, Botswana, Chile, Peru etc. How can the Zambian govt allow itself to be fleeced? This is depressing. I thought taxes are a percentage of price....
Frank,The royalty and windfall taxes are a percentage of price, with the windfall tax being triggered when copper price rises above a certain price ($2.50 per pound I think).Corporate profit tax and variable profit tax are a percentage of profit.http://www.actsa.org/Pictures/UpImages/Summary%20of%20new%20tax%20regime.pdf
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