Zambia Tax Hikes to `Break Economy's Back,' Mines Lobby Says
- Zambia wants more from copper mines amid gaping budget deficit
- Last time state hiked taxes, Barrick said it would halt output
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Zambia’s plan to increase mining royalties will break the back of the economy in Africa’s second-biggest copper producer and make investment there impossible, an industry lobby group said.
Responding to plans Finance Minister Margaret Mwanakatwe unveiled last week to increase royalties by 1.5 percentage points while introducing additional charges for metal exports and imports, the Zambia Chamber of Mines said the measures would “lead to famine.”