THE Chamber of Mines of Zambia (CMZ) has asked the Government to reconsider the new mining tax regime proposed in the 2015 National Budget.
The new mining tax regime will see the introduction of eight per cent mineral royalty tax on underground mining and 20 per cent on open cast mining.
CMZ president Jackson Sikamo told the expanded parliamentary committee on estimates that the new mining tax regime was not progressive and would lead to the closure of some mining companies.
“We have reviewed the new mining tax regime and it is entirely unsustainable,” Mr Sikamo said. “The mining industry needs to be nurtured and the proposed tax regime in the 2015 Budget will destroy it.”
Mr Sikamo urged the Government to reverse the proposed tax regime as it would affect employment and Government revenue in the country.
Zambia is currently among the countries with the highest effective tax rates and increasing taxes would greatly affect existing mines and would-be investors in the mining industry.
So far more than US$12 billion has been pumped into the mining sector and more than 150,000 jobs created, hence the importance of keeping the country attractive for mining investment.
Zambia should also reconsider the introduction of VAT Rule number 18, as it was impractical and impossible for the mining companies to meet.
The mining companies urged the Government to sort out the VAT issue expeditiously, as failure to reverse it would have an impact on the mining companies and total Government revenue collection.
Mr Sikamo said introduction of the taxes would increase the cost of doing business in the mining sector and negatively impact capital expenditure projects and payments to mining suppliers.
The expanded committee of estimates, chaired by Bweengwa UPND MP Highvie Hamududu, took the mines body to task over its members’ ‘quick to cry’ attitude every time the Government suggested increases in the mining tax regime.
Members of the expanded committee on estimates are MMD Ikelengi MP Elijah Muchima, PF Kabwata MP Given Lubinda, Kabompo West UPND MP Ambrose Lufuma, Moomba UPND MP Vitalis Mooya, Lukashya PF MP Elfreda Kansembe, Nchelenge PF MP Raymond Mpundu and Lukulu East MP Christopher Kalila.
Others are Keembe’s Ronnie Shikapwasha, Siavonga UPND MP Kennedy Hamududu, Kasempa MP Kabinga Pande, Mkaika MP David Phiri, Solwezi West UPND MP Villie Lombanya, Pambashe MP Ronald Chitotela, UPND MP Mufalali Likando, Namwala UPND MP Moono Lubezhi, Chipangali MMD MP Vincent Mwale and Lumezi MMD MP Isaac Banda.
This chamber of mines only serve the interests of their cheating imperial masters…Mr. Chkwanda please ignore them!!
Mr Sikamo refused to comment on the bigger profits that Agawal bragged about…
How can you nuture a mine for 50years? ninshi ikakula lisa? chamber of mines should be renamed to chamber of eaters
Ignore sense at your own peril, you think that the Mines are a bottomless pit. Suffering from mass amnesia or mass ignorance? Wasn’t it the collapse of the Mines that led us to HIPC? Well, wait for HIPC II. This time you will not be selling the Mines for peanuts to the likes of Agarwal, but literally giving them away for free or even paying the investors a commission to take them back.
The Tax is for our own good. Just as I mentioned in another thread… “The Mind Set has to change.”
Chamber of Commerce are Unpatriotic and serve the foreign investors who are not following the laws of this country.
VAT Rule18 must stay. The mines must provide proof documents.
RoyaltyTax must stay. Open cast mining damages our environment, we must ensure taxes paid. We need the royalties fro underground mining too.
Parliammentary Group must listen to the will of the people. If some mines have to close be it so, we preserve the copper for future generation, rather than let these investors rob us. The mining investors have become a threat to us. Interfering with gov’t to push their agenda. We can switch them around and get new investors to take over,
Loss of employment for the mines looks a lot different when you take in account underpayment of salaries.
Underpaid mining staff are better assisted by gov’t to enter the entrepreneurial sector than to work as slaves. Help them set up businesses.
Also, I urge fellow Zambians not to vote for PF if they change these taxes. Or for any other party that supports the preposterous mining investor interests.
PF must collect revenue from our mines. Enough is enough. Hon. Chikwanda Sir, I will not support your gov’t if you fail us by succumbing to mining investors. They need to follow gov’t rules to mine in Zambia. This is an incredibly emotive issue.
Don’t kill the goose the lays the golden eggs! It brought down Unip. In view the issue is simple. Argue for or against on the basis of numbers . Grrz must show clearly the reasoning in terms off figures why grz thinks mining companies will still make profit with the increased tax . And the chamber of mines must also state it’s case.
Otherwise it could be disaster for Zambia going forward. I think we should spend more time on listing for Zambian to buy shares and push for local content – spread the
Just pay taxes in line with the proposed mine tax regime. The taxes are justifiable mind you Kansenshi and kalumbila mines only have a mine life of about 10 years as a result of their high copper extraction rate of 300,000 metric tonnes per year for each mine. Time to get a fair share of taxes from these mines is now.