The Chamber of Mines of Zambia Chief Executive Officer Maureen Dlamini says variable profit tax is the same as the windfall tax.
And Mrs Dlamini says it will not help to tax the mines to the point where the mines run out of business.
She however says the Zambian mineral resources should not be a curse to the nation but should lead to economic and social development of the country.
She notes that it is key for the mines to ensure that the beneficiaries are not left out in the development of the sector.
Mrs Dlamini said this at the chamber of mines of zambia international council on mining and metals ICMM report dissemination workshop at moba hotel under the theme ” the zambian mining story”.
And Chamber of Mines of Zambia president Emmauel Mutati says in excess of US $ 8 billion has been invested in the mines by the new owners from the time of privatisation.
Mr Mutati says resulting from this investment, annual finished production has risen from a low of 257,000 metric tonnes per annum to over 700,000 metric tonnes in 2013.
He says this copper production is confidently predicted to rise to over 1million metric tonnes in the next couple of years and towards 1.5 million metric tonnes within 5-10 years.
He says official statistics demonstrate conclusively that the overall contribution to government revenues has steadily increased over the years, as capital allowances from the new investments have expired.
Mr Mutati notes that the new investments have also resulted in an increase in employment opportunities, and a reduction in poverty levels, especially in the copperelt and north western provinces.
He says it is critical for continuous in flow of foreign direct investment in the mining sector that the country retains an attractive and stable fiscal regime.
Said “It will not help to tax the mines to the point where the mines run out of business”
No wonder Zambians are not benefiting from the mines as suppose to. The whole CEO of chamber of mines can be thinking like that. Really!!
Zambia has a lot of educated dull people. Smart for nothing in short.
Wake up. Stop applying old school mentality.
Just increase loyalty tax to 10% then forget about all other taxes. Zambia will be the richest country in Africa!!
Zambia cannot be rich even when you increase mineral royalty tax to 10% and forget all other taxes. Total mineral export earnings in 2013 were just $5 billion and so if you just tax 10% then all you will get is $500 million.
This years budget (2014) is K42 billion and in dollar equivalent at K6 per $1 this is $7 billion. So as you can see $500 million (10% mineral royalty tax) against budget of $7 billion is just 6% contribution which is very low.
Yeah taxing more than 1% will lead them to go out of business, that’s breathtaking impunity and arrogance Dlamini, taking Zambians for *****s.
Come off it!
ALL THE MINE OWNERS NEED TO DO, IS PAY ZAMBIA WHAT IS DUE!!
Argawal said it himself, & there was NO GUN held to his head, when he uttered those infamous remarks about “Huge Profits, & Sleepy Zambians” What more do You want??
You should be looking after Your Citizens first, instead of trying hard to explain, & justify in favour of these Mine owners who have R@ped Zambia senseless, just because You have been Bribed- Atase!! This comes across as Gross Inferiority Complex.
Its Not only the Mines who’ve been Tax Dodging- (Economic Sabotage). Tate & Lyle Sugar company who run Nakambala Sugar, & i’m sure numerous other foreign owned firms are at it as well, & this was exposed in the British paper The Independent.
”Ati variable tax is the same as windfall tax”, so why are you always complaining? The name we want implemented is windfall tax not variable tax. Mutati, why do only tell only tell us the money invested and not the profits?
whether this investment is 8billion us dollars or 80billions us dollar since the time of privatisation the brutal truth is zambia as a country and its people has benefit very very little form this investment.
mutati you should wake up and smell the coffee. surely the money you are bribed with to defend the indefensible cant make you so blind as not to see things that are so plain and clear to every person.
i for one would rather we as a state keep our minerals for future generation who may be better equipped to deal with these issues.rather than let traitors like you mutati preach to over this. in the usa or in israel you could would been jailed a long time ago for aiding the ‘enemy’.very very unpatriotic indeed
” The Chamber of Mines of Zambia Chief Executive Officer Maureen Dlamini ”
Should shut the heck up, because she is a shill for the mining industry that has been stealing the country blind.
” Mr Mutati notes that the new investments have also resulted in an increase in employment opportunities, and a reduction in poverty levels, especially in the copperelt and north western provinces. ”
Oh yes, the MMD’s ‘they will bring jobs’ mantra. And pray tell how many jobs would that be? Considering only 40,000 people are employed in the mining industry, out of a workforce of 5,300,000. That’s 0.75% of the workforce. But hey, ‘they’ll bring jobs’. Of course they also take billions of dollars out of the economy…
Both Maureen and Mutati are paid by the mines. THEY HAVE A COMMITMENT TO BACK THEIR PAYMASTER.
Only a windfall tax can save Zambia. It was windfall tax on North Sea oil that made Margaret Thatcher so successful.
Wake up Hon. Pres Sata!!!