Govt has asked foreign mining companies for alternative proposals following their criticism of planned tax changes, officials said on Friday.
“As a committee, we believe the government has done its research worldwide on which they are basing their proposal,” Godrey Beene, chairman of a Zambian parliamentary committee dealing with mining issues, told the state media.
“We have therefore given mining companies time to go and prepare a counter proposal which they should submit to us any time this week.”
He did not indicate if the proposed rates by the government would be cut.
The head of the Chamber of Mines of Zambia, Frederick Bantubonse, said foreign miners would pay more than the stated 47 percent in effective mining taxes when the new regime comes into force from April, compared to 31.7 percent now.
The government has proposed a windfall profit tax at a minimum of 25 percent and an increase in mineral royalty to 3.0 percent from 0.6 percent.
It also plans a variable profit tax at 15 percent on taxable income above eight percent and to raise corporate tax to 30 percent from 25 percent.
Bantubonse said the mining firms had studied the proposed tax increases and found they would be higher than 47 percent and detrimental to their operations and future investments.
“Mining companies have scrutinized … new mining tax proposals for their own operations and in every case have found that the effective tax rate will be higher than the calculated 47 percent,” he said in a statement.
The government had not called mining firms for a meeting to discuss the tax rates, despite numerous promises.
“To date, no such discussions or consultations have taken place. All mining firms with development agreements are willing to discuss and renegotiate the terms and conditions of their agreements,” Bantubonse said.
Zambia’s biggest copper producer is Konkola Copper Mines (KCM), a unit of London-listed Vedanta Resources .
Others are Mopani Copper Mines, a venture of Swiss firm Glencore International AG , First Quantum Minerals and Chibuluma Mine, a unit of Metorex . Australia’s Equinox Minerals owns Lumwana Mining Plc.
What sort of nonsense is this? Govt should stop wasting time and money and concentrate on other serious matters! If they want to implement the new tax then let them do it now! Which sane govt asks for tax alternative? Who in his right mind would propose a high tax for himself? If anything mine onwers will proposes lower taxes than the current taxes.
That’s why…………
I have never heard before of a govt that ever asked industry to propose how much they could give to the state! It is utter rubbish.
Who is in charge?
What+sort+of+nonsense+is+this%3F+Govt+should+stop+wasting+time+and+money+and+concentrate+on+other+serious+matters!+If+they+want+to+implement+the+new+tax+then+let+them+do+it+now!+Which+sane+govt++asks+for+tax+alternative%3F+Who+in+his+right+mind+would+propose+a+high+tax+for+himself%3F+If+anything+mine+onwers+will+proposes++lower+taxes+than+the+current+taxes.
LT get the story right please. It’s parliament not the government asking for this. The government through the President himself has maintained that the new tax regime is non-negotiable.
The IQ of mr Chuchu is below par whether his education speaks volumes.He has no vision for the country at all.Why did Kafupi in his madness pick on chuchu to run this great nation? If the choice was not for the pipo, by the pipo and to the pipo this is what you get. Mad muwelele waking up with things that he cant achieve at all.Thanks for his madness before he six hours he has to look for lies.You cant lie this great pipo of this nation. your time is over with your fellow new deal movement for maddrax dealers. see you in the court of law after 2011.
The IQ of mr Chuchu is below par whether his education speaks volumes.He has no vision for the country at all.Why did Kafupi in his madness pick on chuchu to run this great nation? If the choice was not for the pipo, by the pipo and to the pipo this is what you get. Mad muwelele waking up with things that he cant achieve at all.Thanks for his madness, before six hours he has to look for lies.You cant lie this great pipo of this nation. your time is over with your fellow new deal movement for maddrax dealers. see you in the court of law after 2011.
All this nonsense calls for Sata. Who negotiates taxes. It is either you pay or you don’t, but you go to jail. Zambian tax base is small and as such, government must collect every penny that it is owed, Period.
I wish this government was also asking citizens to provide them with PAYE Tax rates. They just impose the taxes without consultation and thus don’t understand why they should ask mine companies to provide alternative tax rates.
This simply underscores the fact that our Government is a brave coward. All this calls for prudent leadership to lead this economically rich country masquarading as poor under these incompetent leaders of today.
Let’s have a mines debate.
The people vs the mines.
Representing the people: Michael Chilufya Sata, Dr.KK and Scott.
Representing the mines: Butt-Kisser Bantubonse and his 2 favourite butts.
Winner takes all!
NOSENSE FROM ZAMBIA!!!!!!!!
At the farm I saw a horse riding a man while the plough was culitivating the land using another man…
When I turned back I saw a mop cleaning the floors of the farm house using the farm owner…
At a distance, within the farm premises, a bull was milking a the farm owner’s house wife….
The milk from the woman was probably for the bull’s calves…
The Farm owner noticed the anormalies…
He called for the indaba for all the farm equipment amd the livestock…
He wanted be told how he should be treated at the farm because he doesn’t want to loose his livey hood…
At the indaba one goat maaayd to say you are asking for to much from them…
Madyekuku pleadges to support MMD
MMD National Executive Committee (NEC) member Syacheye Madyekuku has said that people of Southern Province have realised their mistakes and will never support the opposition any more.Madyenkuku said in the next elections the MMD would win all local government and parliamentary seats in the province because people had realised it was pointless to belong to the opposition.He was speaking during a come together meeting for senior MMD and former UPND officials who defected to the ruling party held at Choma Hotel on Wednesday.
Former Dundumwezi UPND member of parliament Emerson Mudenda and Richard Simuchoba, a former provincial official in the UPND, were among the defectors that attended the come together meeting.Also in attendance was a hoard of prominent local commercial farmers who used to be ardent supporters of the UPND.Madyenkuku said the meeting had been convened to map out a strategy on strengthening the MMD in Southern Province and that this would involve both the old and new members of the ruling party.Madyenkuku urged party officials in various capacities to articulate the developmental gains of the new deal government to the people.
Speaking during the same meeting, district MMD secretary Andrew Siamayuwa thanked President Mwanawasa for recognising the leadership potential of the people of Choma district in particular following his appointment of Daniel Munkombwe as provincial minister.
PF should be careful with MMD
PF should be careful with MMD because of the narrow gap between the two during the just-ended Kanyama parliamentary by-election.
These sentiments where raised by the former information and broadcasting minister, Vernon Mwaanga, and reported in one of the private print media.
PF should be very careful in the sense that MMD will try by all means to woo the undecided people to vote for their candidate in any future by-elections, since they have the keys to the national treasury.
I say so because of the dirty politics been portrayed by the MMD.
They utter sentiments like ‘if you vote for the opposition, then you shall never have development in your area’. These a
akaewy007 on December 19, 2010 wow what a disgrace! I dont know why this class is called HULA and not TAHITIAN!!! this is not HULA at all!!! come down to Hawaii and check out the definition of HULA.
These are bad politics.
Let the people vote freely to choose their candidate and the party that they think can bring development to this country.
According to my analysis of the recent by-election, people were voting for MMD because it’s the party in power. As such, if this was a general election, the results would have been different because UPND would have taken the second position.
What%2Bsort%2Bof%2Bnonsense%2Bis%2Bthis%253F%2BGovt%2Bshould%2Bstop%2Bwasting%2Btime%2Band%2Bmoney%2Band%2Bconcentrate%2Bon%2Bother%2Bserious%2Bmatters!%2BIf%2Bthey%2Bwant%2Bto%2Bimplement%2Bthe%2Bnew%2Btax%2Bthen%2Blet%2Bthem%2Bdo%2Bit%2Bnow!%2BWhich%2Bsane%2Bgovt%2B%2Basks%2Bfor%2Btax%2Balternative%253F%2BWho%2Bin%2Bhis%2Bright%2Bmind%2Bwould%2Bpropose%2Ba%2Bhigh%2Btax%2Bfor%2Bhimself%253F%2BIf%2Banything%2Bmine%2Bonwers%2Bwill%2Bproposes%2B%2Blower%2Btaxes%2Bthan%2Bthe%2Bcurrent%2Btaxes.
Shame! Shame! Those in leadership positions have no brains! Where is an army coup?
We need serious minded fellows at the top not mindless suckers who do not know what Zambia needs to develop. Where on earth have you seen exploiters being asked to determine their own tax rates? Zambia is truly in need of a leader. KK, put on your shoes. These kids in office have no idea of what to do to pull their fellow country-men from poverty.
Govt are so fast IN implementing tax’s from Zambian than these forgn’ who come to steal, bushshit why even give them alternatives? We all know what has happened with RTSA on their new abnormal charges that has been introduced.
What%252Bsort%252Bof%252Bnonsense%252Bis%252Bthis%25253F%252BGovt%252Bshould%252Bstop%252Bwasting%252Btime%252Band%252Bmoney%252Band%252Bconcentrate%252Bon%252Bother%252Bserious%252Bmatters!%252BIf%252Bthey%252Bwant%252Bto%252Bimplement%252Bthe%252Bnew%252Btax%252Bthen%252Blet%252Bthem%252Bdo%252Bit%252Bnow!%252BWhich%252Bsane%252Bgovt%252B%252Basks%252Bfor%252Btax%252Balternative%25253F%252BWho%252Bin%252Bhis%252Bright%252Bmind%252Bwould%252Bpropose%252Ba%252Bhigh%252Btax%252Bfor%252Bhimself%25253F%252BIf%252Banything%252Bmine%252Bonwers%252Bwill%252Bproposes%252B%252Blower%252Btaxes%252Bthan%252Bthe%252Bcurrent%252Btaxes.
Govt was coerced into DA agreements by Anglo American with the help of the the British high commissioner/IMF/World bank who preached disposal of the mines in any form. The companies making noise about tax (did not need these tax holidays when they 1st set up took over/set up operation) they simply joined in the feast by complaining that govt needed to level the playing field and not favour Anglo alone. Yet Anglo’s pledged capital expenditure and investment was MILES ahead of these junior/middle tier mining companies which were also granted similar incentives without much thought. Govt needs to give much thought to issues like privatisation/ foreign loans/Multifacility Economic free zones etc
ctd: It seems as a nation we get carried away by verbosity and and fail to decipher the hooks, trap doors, and snares hidden in these nice sounding phraseology like privatisation/MFEZ etc. How many of those that are charged with privatiastion have ever done mergers and acquistions on an international scale. The poor guys are just civil servants or former parastal heads with no clue about the bag of tricks that multinational merger and acquistion executives carry with them. Someone was talking about incentives for power generation. Self-snaring again. The demand for power is enough incentive. What do you do when energy prices triple? Start to cancels DA’s or change the law? Unnecessary
What is known about these MFEZ? What law is governing their creation and operation or are they also above the law and will require repealing of some acts and creation of new ones when we get snared.Who has negotiated for them and what expertise do they have in the field of MFEZ. To what extent will zambian participation be in these MFEZ?
The error committed by the Mining: Have wanted to amortize in a short time the heavy investments made to revitalize the industry Because if indeed the rise of copper leads to huge profits n’n It remains that $ 3 billion were invested!
Proof ZCCM-IH inmate pat on GRZ up to 87% did not receive in dividend KANSANSHI copper mine (he and the same for FIRST QUANTUM) indeed profits used to pay as a first step all ultra infrastructure Modern …
For proof I have never read anything past 3 years on any revendiction or a desire not to see 100% of profits in past depreciation.
SO what seems reasonable in the current debate:
The transition to 3% in respect of royalties.
Keeps 25% of the
SO what seems reasonable in the current debate:
The transition to 3% in respect of royalties.
Keeps 25% of the corporate tax
A maximum of 25% of earnings for amortization
As a result of item 3
Net income over longer tax for Grz
More dividend ZCCM-IH therefore returned to the dividend for the GRZ
The windfall: an aberration as companies in their DA prices of shares it rêglent the ZCCM-IH and not to Grz
Same this ZCCM-IH has debts related to loans made by the GRZ between 1997 and 2002 the IMF aupres de paris club … These debts were cancelled by the IMF and Paris Club but kept in the accounts for ZCCM – IH! It is normal that departure from Anglo ZCCM-IH recovers debt KCM (
MMD is full of capitalists, if you expect miracles from them then you will be waiting for a loooong time. Zambia needs some form of socialist movement with a mix of communism. Originally MMD was created by the capitalists to remove UNIP socialism. What we are seeing now are the fruits of the mistakes that were made in 1991 by removing UNIP from power. Yes KK wasn’t perfect but UNIP had a working system capable of helping all Zambians. If we have a nationalist system like we had before 1991 together with the skills and technology available today, Zambia can become a mini super power within 5 years or less.
What do u expect when the one heading the negotiating team was a flop himself in life.remember the zambia clay deal.and now he is being oiled by freddy and his team. Ass licker shame
Ngayapwa copper bakaye no kuya mukashale namukapa. Bantubonse, whose side are you?
The government of LPM needs to be serious with revenue collection. What kind of nonsense is this where an investor should determine what tax to pay? LPM needs to resign and leave the job to people interested in a better Zambia
Levy and his team are essentially crooks and thieves. They have been fork tongued in managing anything. They are double faced. Mutati, Levy and Magande are liars to Zambians. Mutati is quick ate bringing in foreigners regardless of what their predecessors have done in abusing and exploiting Zambians. Levy has no industry evaluatory skills. He does not have any synergic skills to ensure that the left hand knows what the right hand is doing. Hence you have confused ministries, poor and dangerous labour practices, and abusive foreigners who care nothing about humna life. All MMD leaders will be punished..dearly for their stupid greed and crimes.
Frederick Bantubonse will be held responsible if the Tax is not collected as planned. The best thing for him is to shut up and not behave like a stooge.
Levy and his team must come clean. First they tell the nation they will renegotiate the Development Agreements, then Levy announces a new tax regime, then he calls the Mining firms to “discuss” with Magande and Mwansa, then he says the tax is not negotiable, then some parliamentary committee is asking the Mining firms for “alternatives”, what is all this? Who is in charge here?
Who is in charge of Zambia? GRZ or the mines?
CALL HIM UGLY NAMES TO PLEASE YOUR SELFISH INHUMAN APETITE FOR POWER AND BLIND CHANGE, LEVY PATRICK MWANAWASA IS THE OFICER-IN-CHARGE OF ZAMBIA, INGA MULEDOUBTER BANGWELE TO HELL WITH YOU. REALITY IS VERY RUDE TO THOSE WHO LOST. EVEN SATAna KNOWS LEVY IS DRIVING. LIKE IT OR NOT JUST WAIT FOR 2011 FOR SATAna TO LOSE AGAIN SO HE MAY RETIRE VERY ASHAMED AND BARKING LOUDLY.
LEVY SAID THE TAX HIKE IS HERE TO STAY, PERIOD. THE PARLIAMENTARY COMMITTEE IS JUST BEING ECONOMICAL AND SELFISH WITH THE BURNING AND PIERCING TRUTH. THIS COMMITTEE IS NOT CALLED LEVY, LEVY IS IN-CHARGE AND HE HAS SPOKEN. SHUT UP YOU DOUBTING THOMASES.
NB; I HAVE NOT INSULTED ANYONE BUT JUST CALLED A SPADE AS IT IS CALLED.
#36 I dont doubt the fact that LPM is in power and driving this nation. I doubt his sincerity with issues to do with people and what belongs to them. I am made to believe it is the same LPM who said dont have children if you cant pay for their education. I should think it is the same levey who says all Zambian in the rural should not pay when seeking Medical services. How inconsistent. Do these same poor who can not afford health not the same who would want to have there children in school? How inconsistent indeed. I dont doubt your love for LPM but wake up to these incosistencies. What will stop him from U turning , for he is the driver and decides were this vehicle called Zambia should go.
#36 Getting to use of words to demean others is an insult. I dont know how one would translate a word such as ” Bangwele” , but I believe in means lesser persons than yourself. When a none existing letter of letters are added to your name to state some thing else other than what you are, more so if it relates to evil,I believe than is an insult. Generally an insult is any word that is used to demean others. That is the more reason why you have levels of insults. Your statemnt is in essence insulting the general population that support Mr Sata. Your use of terms such as SATAna is a clever way of putting your intended insult in a cloud so that people can not see.You give it out by suggesting..
that u did not insult any body, but was calling a spade a spade. You statement on Mr SATA being refered to as SATAna appears twice in your write up. U use such words as Ashamed BARKING loudly as he retires is not intended ,as it should, but meant to demean the man and all those that support him.I dont mean to sound phylosophical but imagine those words being used on your great leader.How would u feel. I bet you would feel insulted.I hope these few words I have shared with you will make you a much better blogger. Dont write in rage, think through every thing before you decide to put things to pen and paper.
Bauze…………………………..
Why is the government wasting time? Those who are not interested should leave.
zccm-ih own 20%
And Patriotic Front (PF) Nchanga member of Parliament, Wilbar Simusa, said ZCCM Investments Holdings (ZCCM–IH) must be aggressive in the collection of dividends from the mines where it owned shares.
“I am appealing to the ZCCM-IH to change their approach in demanding for dividends and become more aggressive if the people of Zambia are to benefit from the mineral resources God has given Zambia,” Mr Simusa said
#36, You are barking. Write in small letters.
pnaeuts2105 on July 12, 2011 This car is vile. I love SUV’s but this is a pig in every department. Looks, build, engines performance etc.Dont dick about, buy a Range Rover. Its king and it knows it and so do you.