Review loss carry overs – Action Aid

Government should review the period of loss carry overs for mining companies in the 2016 national budget, Action Aid Zambia Economic Justice Programme Officer Musonda Kabinga has said.

He said a long period for the loss carry overs had a negative impact on tax collection.

Speaking in an interview with Millennium Radio news, Mr. Kabinga said the tax incentives in the mining sector needed to be reviewed because they were affecting the tax collection.

According to the Zambia Revenue Authority, the mining companies

carrying out exploration in the mining sector were guaranteed input tax claim for seven years on pre – production expenditure for exploration. Meanwhile, the Zambia Council for Social Development (ZCSD Executive Director Lewis Mwape has advised Government to reduce the rental withholding tax in the 2016 National Budget to encourage the compliance levels.

And Mr Mwape said Government should expedite the process to gazette the unplanned settlement to enhance the collection of rental withholding tax.

He said Government needed to raise enough resources through tax hence the need to encourage all citizens to contribute to the national treasury.