Vedanta Resources owned Konkola Copper Mines Plc is suing Zambia Revenue Authority over a K3.2 billion ($586 million) tax charge relating to exports of copper cathode. KCM wants the Lusaka High Court to quash ZRA’s decision to charge a 16 percent VAT on the exports from January 2011 to March 2013, according to court papers. KCM also wants the court to reverse the authority’s decision to levy the tax from July.
KCM says “there are serious legal questions to be determined with regard to the legality of the assessments". It alleges that the tax charge would “heavily impact” the company’s ability to service its financial obligations, including paying workers. More on this via Bloomberg.
Chola Mukanga | Economist
Copyright © Zambian Economist 2013