Problem
Zambian mining companies believe that mineral royalties should be capped at 7.5%. They also believe that the mineral royalty tax should be tax deductible as it otherwise amounts to double taxation on mineral revenues not received. Discuss each of these two issues and respond with what you would do. Would you change the mineral royalty cap and if so to what amount? Why or why not would you make or not make the change? What about the double taxation issue, would you change that? Why or why not?