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Friday, 3 September 2010

PF Policy on Mining Taxation (Update)

"The mines were privatized on certain binding agreements and from the time the government introduced the illegal tax regime new jobs are not being created because major expansion projects have been suspended....In order to retain and attract investors we must honour our agreements and also establish a stable, predictable and unambiguous tax regime"
Michael Sata officially announcing the PF U-Turn on its mining policies. We have been dicussing this isssue extensively here. It now appears that what The Post reported was indeed the new PF position. The argument appears to be "jobs" and "illegality of existing taxation". These are very poor reasons and we deal with them under Eight reasons for rejecting higher mining taxes

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