Tuesday, April 16, 2024

Windfall tax would have generated K4 trillion – HH

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United Party for National Development (UPND) president Hakainde Hichilema
United Party for National Development (UPND) president Hakainde Hichilema

United Party for National Development (UPND) leader Hakainde Hichilema has said that the country could have realized about K4 trillion if the government had reintroduced the windfall tax for mining companies.

Mr. Hichilema said that the money collected from the mines in form of tax could have been channeled into infrastructure development in the country.

The opposition leader observes that investing in infrastructure would have helped in reducing the cost of doing business in the country.

Mr. Hichilema adds that this would have further encouraged the private sector to participate in the economic activities that would among other things contribute to job creation.

He has told QFM news that the PF government does not seem to have a clear policy on investment citing the take over of Zamtel as one example that makes the government’s position on foreign investment questionable.

Mr. Hichilema notes that government should be mindful in the way it handles cases involving companies suspected to have been corruptly sold to ensure that investor confidence is not eroded.

QFM

42 COMMENTS

    • @Kalyati Wa Kalyati
      seizing an opportunity and making money is not stealing! That is called business. You propose or offer something and someone accepts to pay for your offer irrespective of mark up (as long as someone is prepared to meet/accept the offer) that is business the world over. Stealing on the other hand is “assuming ownership of property belonging to another” like M’membe and Inchito in the DBZ case. There is a difference there and if HH had stolen, Sata and his mouthpiece, the post would have crucified him by now. But he did good business and made good money out of it. Stick to logic and facts 

    • Mr It is a worry, your capacity to mislead has not diminished at all since we last met. I am glad to counter your perpetually flawed reasoning. Good business relations are based on credibility and if your business partner eventually finds out you gave as little as you can only to gain more, guess which direction the flow of good-will and money will be heading. Straight out of the door.

      It is unethical, unprincipled biatch arse matha fackaz like you who think they can be smart for three seconds and then remain stupi+ for the rest of their lives who mess everything up for every one else. When the truth finally catches up with you, you still remain in denial and actually accuse the other party of wrong doing. I know your evil kind from a mile away. Pray we do not meet in person.

  1. HH,u mean ure not finished yet ? rather watch us govern to a better desine.however i agree bwith u on wind fall taxi.thats wat i think.but leave zamtel alon if u have no political will on it

    • Learn how to spell then you can govern. Think through your thoughts before you share them because you are not making any sense at all

  2. #2, there is no argument that the MMD was found wanting on the ZAMTEL privatisation process. What HH is saying is that PF must ‘reposses’ in a transparent and accountable manner. What we are seeing is that after PF grabbed ZAMTEL and then put in its cadres to run it and if you look at how it is being managed, the company is headed for collapse.

  3. The PF U-turned on the reintroduction of windfall tax for fear of some mines closing as a result of the windfall taxing system which could have manifested in high levels(numbers) of unemployment

  4. Learned chaps can someone ask HH what period he is attributing to have collected 4 trillion? Is it for the last 20 years or is it for the last 6 months PF has been in power. If he refers to the later, then he is as shallow as someone can be. There is hardly been any time to change the previously agreed tax regime with MMD and even if that happened collection couldnt have been started within 6 months. However, in the long run PF will have to consider introducing the windfall tax as I dont see copper prices falling down any sooner.

    • You are the one who is actually very dull,, since you think you are so learned please share how much let’s say kansanshi mine at its current rate of production and profits would be sumbmiting to this windfall tax???
      The problem is that Zambia is filled with too many dull people like you.

    • 6.1 Realist – you obviously failed to understand my argument. Simply you cannot legislate for one dimentional minnows like yourself. I am not contradicting the the fact that we can gain money from windfall tax but it would have been impossible to overhaul the tax agreement by the preceding govt and replace it by the windfall tax one and collect 4 trillion kwacha all within six months. Even if all parties (Govt and mining companies) agreed on windfall tax there’s need for a weaning process before a new agreement is embarked on. Therefore, technically that feat of collecting 4 trillion and producing employment within 6 months is far fetched. In future for sure we need to consider this. I hope I have made myself clear

  5. # 5. Good point i give you an A+.. I wonder why people argue on straight forward issues.. Infact its good that the PF govern.is making steady U turns otherwise ngani kafwafwa..

  6. HH is still not ripe for politics. I am sure he knows the position and why the Govt has not introduced the windfall Tax but refuses to reason and opens his mouth instead. There are certain information in areas of Governance that is only revealed upon taking the instruments of Power. Obama ranted heavily on closing Guantanmo Bay, is it closed? changing the way capital hill conducts business and politics, has anything changed? Please grow under 5. By the way I am told he says he does not want to be outdone by Mumba in ranting in public hence anything will go and so will his little ingtegrity left in him, what a shame.

  7. HH shut the door to presidency for himself when he withdrew from the PACT. THERE IS NOTHING THAT HE SAYS NOW that MAKES SENSE. HE DISAPPOINTED THE PIPO OF ZAMBIA WHO FORMED THE PACT.HE HAS NO HEART FOR THE PIPO. CAN HH try farming, he is a political MISFIT.

  8. Hakainde, at times i wish you could be consistent in matters pertaining to national issues. had PF government implemented the windfall tax you would have been the first to accuse them that they are dis couraging investment.The corruption in judiciary is a well known national issue of which you have shown displeasure with on several fora, and i expected you to advocate for a commission of inquiry to look into the operation of the judiciary,but the contrary spirit is taking over from your earlier on views, becoz of the case of Mmeembe and his friend Nchito.

    • one wonders the yardstick used to come up with 4trillion!
      leave people working for the mines to work !

  9. this is the shallowest level of economic/ business analysis and biggest heap of crap i’ve heard from a supposed economist.. And to believe this guy graduated with a distinction at UNZA. I cant blame people that have issues with the quality of UNZA’s qualifications and it falling regional ranking.

  10. It sounds like Windfall tax is Zambia’s only redeemer, and maybe so but I also do appreciate what the VP said last time he talked about. We need to clean up the tax collecting system and ensure all little taxes are collected timely and consistently. There is too much uncollected tax in our country and while HH may be right at least lets clean our house.

  11. Leave the man alone. He is providing checks and balances on PF govt. That is what we need. Bravo HH. With Nevers Mumba coming in, PF would be helped to perform better than they would have done without effective and intelligent opposition. Let’s nature our multipaty democracy.

  12. K4 trillion in 6 months? wow HH you are a magician! Quoting a figure from nowhere without any reference to the time his talking about is misleading. I may not be an economist, but he should specify the business quarter year in which the govt could have raised the K4 trillion since PF took over.

    • K4 trillion is only 1 Billion dollars – in 6 months. That is nothing – the question you should ask is whether Windfall Tax can be implemented without negative consequencies.

  13. Yes # 16, you are right, the qns people should ask HH is HOW?? brushing aside what he says may confirm that most PF sympathisers are allegic to critisism and are blind followers. If you dont know just ask how, how, how, how???? HH may just offer you an answer. trying to talk abt how PF won is like telling our national team to stop traing cos they are afcon champions!! God help you.

  14. Robert Sichinga has urged finance minister Situmbeko Musokot-wane to heed advice from US Ambassador to Zambia, Mark Stor-ella, to take advantage of the high copper prices and adjust mining taxes. In an interview yesterday, Sichinga – who is a business consultant – said Zambia could afford to justify the reintroduction of windfall tax in the mining sector because copper prices have continued to rise.

    He said the mines were now making more profit out of the high copper prices, and so Zambia should partake in that. He said this should not be postponed because the ability of the companies to pay that tax may not be there when the prices go down.

  15. Sichinga said it was illogical for the ministry of finance to allow the mine investors to reap maximum revenue out of the sector at the expense of the Zambian citizens. “The argument is that why should Zambia not participate in the super profits they are making, why should it just be left for the investors?” he asked.

    Sichinga said it was ironical that the mining sector contributed less than one per cent to the gross national revenue collections when Zambia depended on copper as its main export. He wondered why Musokotwane did not want to heed the advice from corporating partners.

  16. “It’s not only the American envoy that has talked about it, remember the World Bank has talked about it and the IMF has talked about it too. What wisdom does Mr Situmbeko Musokotwane have over all these people? Some of us who have worked on the mines we know what happens. We are saying to them that at US $8,500 per tonne of copper, Zambia must participate in that revenue,” said Sichinga.

  17. PRESIDENT Rupiah Banda’s continued insistence that the government will not reintroduce windfall tax despite current high metal prices clearly shows that he has no plan for this country, Ng’andu Magande has observed.

    President Banda said people calling for the reintroduction of the windfall tax did not understand governance of the country and higher taxes might trigger capital flights from the country’s mining sector.

    But Magande said President Banda was opposing the windfall tax because he did not understand it and he did not have any agenda for the country.

    “A windfall tax means therefore this person has already recovered his expenditures. He has already worked out the normal profit, he is now getting a windfall profit. And that is what you say, can we share more?

  18. Uko! Munaviyamba mweka na ma 90 day miracle… so don’t blame HH for refusing to be outdone! His is 4 Trillion in 120 days!!!

  19. C’mon now didn’t ka HH say that introducing Windfall Tax would scare away investors (I stand to be corrected), Please can HH chap elaborate which tax period he means as the government’s policies kicked in in April last month. 
    Zambia is in need of proper opposition leaders not this useless chap, why didn’t stand in Livingstone as an MP and learn a thing or two about leadership and reading the public mood. 

  20. It is interesting to see the dimwits who used to insult dr musokotwane on his stance over the windfall tax turnaround now and insult hh over something that sata campaigned for. It seems in Zambia policies are supported or criticised on the basis of someones ethnicity. What a sad state of affairs. Pf leaders and cadres should apologise to dr musokotwane.

  21. I fail to follow childish politicians like HH who comment on anything. He has very nice words and phrases that he vomits when angry. My advice is just join the XYZ crew and start producing serious tunes. After all you really danced well towards last year’s campaigns. You paired well with BRIAN.

  22. yes K4trillion in 6 months is possible you fools
    these mines pay as much as K5Billion each per day in taxes to the government yet, that K5Billion is a drop in the ocean compared to profits they siphon out to their impoverished Western and Asian countries !

  23. Some times I wonder if some of you are not in plants whose job on the social media is just to shoot down what ever HH says. You look at what ever HH says with prejudice. People be objective. Sometimes I get confused on knowing who is opposing who.

  24. HH is very selfish. The man didn’t have the audacity to explan his change of position. It’s obvious HH wants to appease the multinationals who might be funding his campaign. The man is not patriotic. He wants to sell this country but EL says the Dojo is not for sale. Vote wisely. Vote EL.

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