An international civil organization Action Aid has advised the government to review the country’s tax system in the mining sector.
Action Aid Economic Justice Project Officer, Kryticouf Nshindano says government should make sure that it generates more income from the mines through tax collection because copper and other minerals are non-renewable resources.
Mr. Nshindano says it is now very clear Zambia is not benefiting from its mines as expected.
ZANIS reports that Mr. Nshindano said this in a telephone interview in Lusaka, yesterday.
He also observed that the country is not generating the maximum income from the mining industry because there is no value addition in the mining sector.
Furthermore, Action Aid Economic Justice Project Officer said that government should make sure that Zambia Revenue Authority and other related institutions have the full capacity to monitor the operations of the mines if it is to curb tax evasion by some multinational cooperation.
Mr. Nshindano also pointed out that the windfall tax may be one way of helping the country to collect enough tax from the mines.
He however said that if government was to introduce the windfall tax, its application should be uniform so as not to segregate other mines as they do not produce the same amount of copper.
Mr. Nshindano further said that as the Ministry of Finance Prepares its budget presentation, they should make sure that they maximize revenue from the mines through the minimizing of tax evasion by the mining Multinational Companies.
He also said that government should also make sure that it prioritizes its activities if it is to reduce on unplanned expenditure which is costly to the nation and its citizenry who are the tax payers.
Earlier this year there was some reports that a named mining company had been falsifying its income to evade paying tax.
It has also been cited that Zambia has been losing billions of Kwacha through tax evasion, financial flaws, corruption and other corporate frauds by some multinational mining cooperation.
And we are still waiting for the Auditor report…I wouldn’t be surprised if it on Fossil Chikwanda’s desk gathering dust.
Action Aid it is that softex woman, publish her picture and we will read and comment on the story.
LOL….the very foreigners who wish to invest know we are being ripped off..big time.
We are asking for this when chikwanda who should do this for us is the one who is busy trying to protect the mines at the expense of Zambian.
Even those chaps crying to have those who released the so called secrete documents are dull.
What secrete when what the chap was trying to do was destructive to the Zambians. 600 Million dollars is not a small amount.
This can only work if Chikwanda is removed because he is the one who is key to this issue. we the workers are the ones paying tax for most of the government requirements in Zambia. Very little from the mines and Chikwanda doesn’t like this kind of a talk. He is more into business than politics just like his friend GBM.
Interesting Documentary of Zambia specifically Glencore (Mopani Mines) under the current Government. Please watch this video and encourage others to do so, there are major concerns raised about our country. Knowledge is power. Here is a brief description of the video “Rüschlikon is a village in Switzerland with a very low tax rate and very wealthy residents. But it receives more tax revenue than it can use. This is largely thanks to one resident – Ivan Glasenberg, CEO of Glencore, whose copper mines in Zambia are not generating a large bounty tax revenue for the Zambians. Zambia has the 3rd largest copper reserves in the world, but 60% of the population live on less than $1 a day and 80% are unemployed. Based on original research into public documents, the film describes the tax system…
Here is the youtube link for the Glencore Mopani Documentary. https://www.youtube.com/watch?v=WNYemuiAOfU
We need voices like this to talk about mine taxes. If Alex wants those who leaked the letter to be punished then he must also be punished for the wrongs he has committed.
Why should we even be talking about classfied documents here when they contain injurious information to the common Zambian? What will be the law of whistle blowers if we are going to allow illegality to be classfied? There are no security concerns in the so called classfied letter. It only affects chikwanda’s security.
1. Zambia borrows from IMF to build infrastructure to support mines e.g. Hydro-power stations, roads, etc.
2. Mines buy the power cheaply from state owned ZESCO
3. Mines evade paying tax through tax havens
4. Zambia goes back to IMF & donors for more funding to supplement their budget because of insufficient tax collection.
5. Zambia defaults on initial loans & is downgraded by moody’s meaning they borrow at very high interest rates.
6. Standards go down:- schools produce sub-standard graduates.
7. Govt. borrows more & more.
Its a vicious cycle…
How right. Of course Chikwanda may argue that he does not solicit for contracts for that company from the mines. However, with the tax rebates both the mines and this company makes extra profits which eventually the shareholders get to benefit which includes Chikwanda. Deny it as much as he wants, but he does in the end benefit. Remember on Dick Cheney had to resign his Chairmanship of Harlliburton when he become VP because of conflict of interest.
Only sad thing is that the whistle blowers are targeting a bigger prize hence this exposee.
” He however said that if government was to introduce the windfall tax, its application should be uniform so as not to segregate other mines as they do not produce the same amount of copper. ”
Another way to collect would be for the ZRA to confiscate every 4th truckload of ore. That way, no one can cheat on taxes, and there is a clear collection of what is due.
Or, the state could own the mines outright again.