LUSAKA – A global conference aimed at discussing the taxation of the mining sector opened on Monday with the Zambian government saying there is a need to strike a balance between attracting investment in the sector and ensuring firms pay their fair share of taxes.
The global conference on the future of resource taxation has attracted government officials, experts, and civil society organisations from across the world to discuss taxation of the mining sector.
The conference was organised by the African Tax Administration Forum and the Zambia Revenue Authority (ZRA).
In remarks delivered at the start of the conference, Situmbeko Musokotwane, Zambia’s minister of finance and national planning, said mining is an integral part of the global economy, and it plays a pivotal role in shaping nations, driving economic growth and fostering sustainable development.
“As we gather today, I would like us to recognise the importance of striking a delicate balance between promoting investments and ensuring a fair and equitable taxation framework that benefits both the industry and the societies where mineral resources are found,” he said.
He acknowledged that due to the complex nature of the industry and the unique characteristics of mining operations, mining taxation presents various challenges which need to be tackled. He tabulated some of the challenges as complex fiscal regimes, lack of transparency, volatility of commodity prices, revenue volatility, and tax base erosion.
According to him, addressing the challenges requires a comprehensive approach that involves robust tax legislation, effective enforcement, monitoring mechanisms, and international cooperation to combat tax avoidance and profit shifting.
He further challenged the delegates to explore innovative strategies, share best practices, and shape policies that will foster responsible and sustainable mining practices in the world.
Dingani Banda, the ZRA commissioner general, said the repositioning of mining taxation for the next transition represents a unique opportunity to foster sustainable development and ensure responsible extraction of resources.
He said countries must also cope with the complexities of adapting the tax regimes and tax administration practices to align with the changing dynamics of the mining industry.
-Nampa/ Xinhua