Selection of Zambia’s optimal copper mining excess profit tax
Mineral taxation is an important revenue-generating instrument for the Zambian government. A good combination of tax instruments in a fiscal regime will help a mineral resource-rich country to generate revenue needed for economic development. This paper selects Zambia’s optimal copper mining excess profit tax. The choice was made between variable profit tax and windfall tax. This was attained by using the fuzzy analytic hierarchy process (AHP) and fuzzy technique order of preference by similarity to ideal solution (TOPSIS) methods. The selection process was anchored on four evaluation criteria: administrative efficiency, investor risk, government risk, and progressivity. Results show that windfall tax is technically superior to variable profit tax. Therefore, windfall tax was selected as Zambia’s optimal copper mining excess profit tax.