LUSAKA, Dec 28 (Reuters) - Zambia is withholding 2.4 billionkwacha ($243 million) of the 5 billion kwacha owed to miningcompanies in tax refunds because the correct documentation hasnot been provided, the tax authority said on Wednesday.
Zambia's government began paying up to 800 million kwacha amonth in Value Added Tax refunds to mining companies in June,aiming to put an end to a long running dispute in which firmswere owed about $700 million.
Some funds are being withheld because companies have notprovided documents showing the export destination, ZambiaRevenue Authority head Kingsley Chanda told reporters.
Glencore's Mopani Copper Mines, First QuantumMinerals, Barrick Gold and Vedanta Resources all have operations in Africa's No.2 copper producer.
Chanda said low copper prices and the depreciation of thekwacha this year hit mining companies, leading to a 1 billionkwacha drop in expected tax collection.
Zambia is also withholding 40 million kwacha every monthfrom South African-based exporters of petroleum products as theydo not qualify for tax exemption under a regional agreement.
Most of the petroleum products coming from South Africa wereinitially imported from Saudi Arabia or Kuwait, countries thatdon't have a trade agreement with Zambia, Chanda said.($1 = 9.87 Zambian kwacha) (Reporting by Chris Mfula; Editing by Joe Brock)
Glencore (GLEN)
