Africa’s biggest copper producer, Zambia, is planning to repatriate foreign currency made from exports back to the country in an effort to crack down on tax evasion, mainly in the mining sector, reports Financial Times.
The ruling, which may come into force in a couple of weeks, would apply to all exports and imports over $10,000, Zambia’s deputy finance minister, Miles Sampa, told the FT. Companies would have 60 days to deposit funds in a commercial bank in the southern African country and they would be forced to provide banks with evidence that supports reasons for transferring funds offshore, such as dividend payments, or to import equipment.
The country doubled its mining taxes in 2011 to 6%, claiming that Zambia was not getting enough benefits from its mineral wealth. Contrary to what analysts predicted, the measure did not scare away mining companies such as Glencore International and Vedanta Resources.