Kalaba pledges to reintroduce Mineral Royalty Tax

By BARNABAS ZULU

CITIZENS First (CF) leader Harry Kalaba has vowed that he shall reintroduce the Mineral Royalty tax (MRT) if elected into office, accusing the ruling United Party for National Development (UPND) of weakening the country’s mining revenue base by scrapping the tax regime.
Mr Kalaba said mineral royalty tax remains a critical tool for safeguarding the country’s mineral wealth and ensuring that Zambians derive maximum benefit from copper production.
“We will reintroduce the mineral royalty tax which the UPND scrapped off because it is not in the best interest of the Zambian people to give away our minerals without proper taxation,” Mr Kalaba said.
He argued that mineral royalty tax is treated as an expense by mining firms and is used to reduce taxable income, thereby diminishing the country’s overall revenue collection from the sector.
“Mineral royalty tax remains an expense which is used to reduce the taxable income. That is not fair to the people of Zambia who own these resources,” he said. “We believe the mining sector must contribute meaningfully to national development.”
The former foreign affairs minister said a CF government would revert to the tax framework introduced under late President Michael Sata, where 25 percent was charged as mineral royalty tax on copper production sales.
“Under President Sata, 25 percent was charged as MRT on copper production sales, and that is the regime we intend to restore,” Mr Kalaba said. “We want a predictable and firm tax system that ensures the country benefits from its mineral resources.”
Mr Kalaba maintained that Zambia’s heavy dependence on copper demands a robust taxation model that shields the country from revenue losses during periods of high production and favourable global prices.
“As Citizens First, we are saying our minerals must work for the people. We cannot continue with a system that allows multinational mining companies to externalise profits while Zambia struggles with debt and underdevelopment,” he said.
He said his administration would engage stakeholders in the mining sector to ensure that any changes to the tax regime are implemented transparently and consistently.
“We are not against investors, but investment must be mutually beneficial. There must be fairness and equity in how mineral wealth is shared,” Mr Kalaba said.
The UPND government has previously defended its mining tax reforms as necessary to attract investment and stabilise the sector, arguing that policy consistency is key to increasing production and economic growth.