By BUUMBA CHIMBULUTHE 10 percent import duty on capital equipment should be revisited because it is negatively affecting the mining industry, says Michael Phiri, tax partner at KPMG Zambia.Mr Phiri said the major items of equipment used for sinking shafts and building plants were not manufactured locally, but were essential to developing mining projects.He told the Mining for Zambia Magazine that a good Customs Duty regime operated on the basis that the capital goods and equipment had a low import duty, or ideally, were duty-free.Mr Phiri stressed that semi-processed goods should attract a higher duty than capital equipment, while finished goods should attract the highest duties because neither of these categories supported local production.“The 10 percent import duty on capital equipment is another negative measure that really has to be revisited.“At the moment, the current duty regime is simply making it harder to develop projects that would stimulate production and economic activity which, again, is […]
‘REMOVE IMPORT DUTY ON CAPITAL EQUIPMENT’
