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The Wall Street Journal reported today that Zambia has done away with a controversial tax restriction on copper exports. The rule change will end an ongoing standoff with companies, with miners set to receive millions in tax refunds.
The Wall Street Journal reported today that Zambia has done away with a controversial tax restriction on copper exports. The rule change will end an ongoing standoff with companies, with miners such as Glencore Plc (LSE:GLEN) set to receive millions in tax refunds.
As quoted in the publication:
The rule, requiring mining companies to present import documents from the country of destination to get tax refunds, will be scrapped from Sept. 8, ending a spat over more than $600 million in accumulated value-added tax refunds that had been threatening to hobble the country’s mining industry.
The development comes just a few days after the chamber of mines warned that copper-mining companies are facing a financial squeeze due to the delayed refund, threatening output and jobs in the continent’s second-leading copper producer.