Economics
Zambia Seen Considering Higher Mine Taxes to Trim Budget Gap
- IMF sees nation at high risk of external debt distress
- Government revenue plans suggest mine tax rates to rise
This article is for subscribers only.
Zambia plans to trim its fiscal deficit next year even as Africa’s second-biggest copper producer boosts spending. It may be considering raising mine taxes to achieve that, according to analysts.
The Finance Ministry is targeting a budget shortfall of 6.5 percent of gross domestic product next year, compared to 7.4 percent this year, according to a medium-term expenditure plan that sets its fiscal course until 2021. At the same time, it forecasts mineral-royalty and mine-profit tax revenue increasing by about a quarter, as copper output grows 3.7 percent and prices remain flat.