UPDATE 1-Indebted Zambia pays $400 mln in VAT refunds to mining firms [Reuters]
Barrick Gold Corporation (BC) (GOLD)
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Source: Reuters
By Reuters Staff 2 Min Read (Adds details, background, reaction) LUSAKA, Jan 13 (Reuters) - Zambia paid 8.5 billion kwacha ($400 million) in value-added tax refunds to mining companies last year, the head of the tax authority said on Wednesday, equal to about 3.5% of the external debt that the southern African country is struggling to repay. Zambia, Africa’s second-largest copper producer, is negotiating with creditors to try to get debt relief, after it defaulted on a $42.5 million coupon in November. The economy was already struggling even before the coronavirus pandemic owing to low prices for copper, its main export, and the IMF had classified it as in debt distress. The VAT refunds to the mining sector represent 67% of the total such refunds made, Zambia Revenue Authority (ZRA) Commissioner-General Kingsley Chanda said at a media briefing, adding it was “in line with our desire to dismantle all outstanding refunds.” Zambia’s Chamber of Mines President Goodwell Mateyo said the go
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