Zambia Revenue Authority must tighten monitoring to secure mining reforms – PMRC

The Policy Monitoring and Research Centre (PMRC) has urged the Government to strengthen the Zambia Revenue Authority’s (ZRA) monitoring and compliance systems to ensure that recent fiscal reforms in the mining sector deliver their intended impact.

This follows the landmark policy in the 2026 National Budget, which raises the turnover tax threshold for Artisanal and Small-Scale Miners (ASM) from K800,000 to K5 million — a move hailed as a major step toward inclusivity and fairness.

PMRC stated that to fully realise the reform’s potential, Government must enhance ZRA’s analytical and digital monitoring capacity and integrate ASM data into the broader fiscal management framework.

“To maximise the benefits and mitigate the risks of this reform, the Government should continuously support strengthening Zambia Revenue Authority monitoring efforts,” PMRC said in its post-budget analysis.

The group explained that the measure aligned the ASM tax threshold with the general turnover tax limit applied to other small businesses, removing what it described as a “cliff effect.”

Previously, small-scale miners who exceeded the K800,001 mark were pushed from a simple four percent presumptive tax system into the complex corporate tax regime, a shift that discouraged growth and formalisation.

Under the new harmonised system, small-scale miners are expected to benefit from simpler compliance, fairer taxation, and improved access to finance and markets.

The reform aims to promote formalisation, drive economic empowerment, and strengthen policy coherence across small business sectors.

However, PMRC cautioned that the reform’s success depends on ZRA’s ability to monitor, enforce, and evaluate compliance within the artisanal mining subsector.

It called for investment in modern data systems, stronger audit capacity, and better coordination among ZRA, the Minerals Regulation Commission, and local authorities managing artisanal operations.

They also recommended targeted support to help miners transition into formal structures, including assistance with cooperative registration and the enforcement of clear ASM definitions to prevent policy abuse by larger, unqualified operators.

“Without adequate monitoring, the reform risks creating loopholes that could encourage under-declaration of revenues and tax leakages,” PMRC warned, adding that effective oversight would help preserve revenue integrity while advancing empowerment goals.

The Government has allocated K1.2 billion to the mining sector in the 2026 budget, including K449.5 million for artisanal and small-scale mining support and K75.9 million for the operationalisation of the Minerals Regulation Commission.

PMRC stated that while the allocations demonstrated strong fiscal commitment, enforcement and institutional coordination will be key to turning the reform into tangible economic benefits.

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