Zambia, Africa's biggest copper producer, plans to force
companies to repatriate foreign currency earned from exports in a
move to crack down on tax avoidance, the Financial Times reported
Monday.
The new rules would apply to all exports valued at more than
$10,000 and give companies 60 days to deposit funds in a commercial
bank in Zambia, Miles Sampa, deputy finance minister, told the FT.
Companies would need to provide the banks with evidence that
supports reasons for transferring funds offshore, such as dividend
payments, or to import equipment.
Details of the legislation will be released in the next few
days, the FT said.
Zambia's finance ministry did not immediately respond to
requests for comment.
Copper mining companies, including Toronto-listed First Quantum
Minerals Ltd. (FM.T), Glencore International AG (GLEN.LN), Brazil's
Vale (VALE) and Vedanta Resources PLC (VED.LN), are managing
Zambian projects worth billions of dollars.
Zambia's copper output is forecast to reach up to 1.5 million
metric tons by 2015, from around 800,000 tons produced last
year.
Frederick Bantubonse, general manager at Zambia's Chamber of
Mines, said measures to control foreign exchange would not halt
projects, but could see operations scaled down and affect future
investment, the FT reported.
Full story:
http://www.ft.com/cms/s/0/5bfbd716-afe0-11e2-acf9-00144feabdc0.html#axzz2RpgSkCNU
Nicholas Bariyo in Uganda contributed to this report.
Write to Sarah Kent at sarah.kent@dowjones.com
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