• Login
    View Item 
    •   OpenDocs Home
    • Institute of Development Studies Research Repository
    • International Centre for Tax and Development
    • International Centre for Tax and Development
    • View Item
    •   OpenDocs Home
    • Institute of Development Studies Research Repository
    • International Centre for Tax and Development
    • International Centre for Tax and Development
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Caught in a Trap: Zambia’s Mineral Tax Reforms

    Thumbnail
    Download
    ICTD Working Paper 5.pdf (1.468Mb)
    Date
    2012-09
    Author
    Manley, David
    Metadata
    Show full item record
    Impact
    Abstract
    Any investment that involves unrecoverable costs relies on the good faith of the government not to raise taxes after costs have been incurred. Unfortunately, features inherent within the political economy of natural resource industries, and particularly within poor countries, makes a stable investment environment difficult to achieve. Indeed, some suggest that countries may fall into a trap in which one episode of instability breeds the conditions for future instability, creating a vicious circle that prevents a country fully benefiting from its mineral wealth. The recent rise in commodity prices is one feature that has influenced reforms in mineral industries around the world. While the general determinants are becoming better understood, each country may offer new insights into this problem. This paper focuses on Zambia’s experience to understand what determined the tax reforms there. In addition, it explores the successes and failures of the mechanisms used to ensure a stable investment environment in Zambia. The paper finds that contract clauses between mining companies and the Zambian government provided some stability, even if no arbitration has so far occurred. In addition, certain tax structures imposed so far have not provided any protection. This paper suggests a better enabling environment, including greater diversification and government administrative capacity, may make these strategies more successful in the future.
    URI
    https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/2308
    Citation
    Manley, D. (2012) Caught in a Trap: Zambia’s Mineral Tax Reforms, ICTD working paper 5, Brighton: IDS
    Is part of series
    ICTD working papers;5
    More details
    http://www.ictd.ac/en/publications/caught-trap-zambia%E2%80%99s-mineral-tax-reforms
    Rights details
    http://www.ids.ac.uk/files/dmfile/IDSOpenDocsStandardTermsOfUse.pdf
    Sponsor
    DfID
    Collections
    • International Centre for Tax and Development [386]

    About OpenDocs | OpenDocs Policy | Help | Contact Us | Send Feedback | Disclaimer and Cookies
     

     

    Browse

    All of OpenDocsCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    LoginRegister

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    About OpenDocs | OpenDocs Policy | Help | Contact Us | Send Feedback | Disclaimer and Cookies