Thesis Chapters by Reuben Makamo
THE EFFECT OF COVID 19 ON MINING TAXATION IN ZAMBIA , 2023
The outbreak of Covid 19 in late 2019 affected many areas of human life. Besides the massive rest... more The outbreak of Covid 19 in late 2019 affected many areas of human life. Besides the massive restrictions due to major lockdowns that characterized many countries, the business environment was not equally spared. This meant a remarkable decline in business profits which form a basis of taxing business income including that from mining activities.
Countries such as Zambia which largely depend on mineral exports suffered tremendously resulting from the economic shock caused by Covid 19. The country depends on copper exports to large economies such as China, Canada, Switzerland, Thailand and neighboring South Africa. According to the World Trade Organization (WTO), copper remains Zambia’s major economic export commodity accounting for over 70% of all exports (www.wto.org).
Among many other sources of the Zambian government revenue, taxation is one of them. Mining contributes between 10% to 15% of the country’s Gross Domestic Product (GDP). The taxes are charged on the basis of the norm price which is the copper price on the London Metal Exchange. This determines how much tax is levied and hence the tax revenue from this sector. In addition, supporting industries such as suppliers of goods and services to the mines supplement government efforts to provide employment opportunities to the Zambian people and also provide another tax base used to levy corporate, import and employment taxes. The effect of this pandemic has a direct impact on the Zambian economy and the people of Zambia at large.
This study demonstrates the effect of the Covid 19 pandemic on the tax revenue from mining activities which has always been a determinant of the country’s economic health. It is therefore important to know how Covid 19 impacted the country’s mining tax revenue.
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Thesis Chapters by Reuben Makamo
Countries such as Zambia which largely depend on mineral exports suffered tremendously resulting from the economic shock caused by Covid 19. The country depends on copper exports to large economies such as China, Canada, Switzerland, Thailand and neighboring South Africa. According to the World Trade Organization (WTO), copper remains Zambia’s major economic export commodity accounting for over 70% of all exports (www.wto.org).
Among many other sources of the Zambian government revenue, taxation is one of them. Mining contributes between 10% to 15% of the country’s Gross Domestic Product (GDP). The taxes are charged on the basis of the norm price which is the copper price on the London Metal Exchange. This determines how much tax is levied and hence the tax revenue from this sector. In addition, supporting industries such as suppliers of goods and services to the mines supplement government efforts to provide employment opportunities to the Zambian people and also provide another tax base used to levy corporate, import and employment taxes. The effect of this pandemic has a direct impact on the Zambian economy and the people of Zambia at large.
This study demonstrates the effect of the Covid 19 pandemic on the tax revenue from mining activities which has always been a determinant of the country’s economic health. It is therefore important to know how Covid 19 impacted the country’s mining tax revenue.
Countries such as Zambia which largely depend on mineral exports suffered tremendously resulting from the economic shock caused by Covid 19. The country depends on copper exports to large economies such as China, Canada, Switzerland, Thailand and neighboring South Africa. According to the World Trade Organization (WTO), copper remains Zambia’s major economic export commodity accounting for over 70% of all exports (www.wto.org).
Among many other sources of the Zambian government revenue, taxation is one of them. Mining contributes between 10% to 15% of the country’s Gross Domestic Product (GDP). The taxes are charged on the basis of the norm price which is the copper price on the London Metal Exchange. This determines how much tax is levied and hence the tax revenue from this sector. In addition, supporting industries such as suppliers of goods and services to the mines supplement government efforts to provide employment opportunities to the Zambian people and also provide another tax base used to levy corporate, import and employment taxes. The effect of this pandemic has a direct impact on the Zambian economy and the people of Zambia at large.
This study demonstrates the effect of the Covid 19 pandemic on the tax revenue from mining activities which has always been a determinant of the country’s economic health. It is therefore important to know how Covid 19 impacted the country’s mining tax revenue.