-The Zambian Chamber of Mines, ZCM, is happy with government decision to wave windfall tax on Copper and Cobalt prices.
ZCM president, Nathan Chishimba, said the measure reflects government’s commitment to assisting mining companies remain viable and sustain their workforce.
Mr Chishimba, however, said the negative effects of the on going global financial crisis and high production costs required measures to cushion the negative impact on the mining industry.
He expressed confident that the measure would also help promote investment in the sector.
Mr. Chishimba said the mining industry in Zambian does not control commodity prices at the world market and hence the sector could not isolate itself from the negative effects of the global economic recession.
He also said the high cost of doing business in Zambia create a barrier to economic growth and hence called on government to work with the mining industry to streamline the burden and other statutory costs involved.
Meanwhile, Vice Republican President George Kunda is tomorrow expected in Livingstone for the official opening of the 2009 African Mining Congress (AMC).
Mr. Kunda who is also Justice Minister is scheduled to arrive at the Livingstone International Airport around 08.30 hours and will be received by the Provincial Minister, MMD Provincial Chairman, the Permanent Secretary, the Mayor, and the provincial leadership.
The Vice President is also scheduled to receive briefings from the provincial leadership at the Royal Livingstone Hotel.
This is contained in a programme statement made available to ZANIS by provincial administration office.
After his arrival , Mr. Kunda will proceed to Zambezi Sun Hotel where he is expected to receive briefings from the AMC organizers.
Mr. Kunda is expected to depart for Lusaka after the official opening of the congress.
ZANIS/MM/MKM/ENDS
ENDS/AC/ZANIS/SJK
How is Zambia then going to benefit from its resources??? **==**==**==
Ba LT kanshi mulachinga bambi i saw some 2 comments yabantu manje yadisa kanshi efyoyaka
I smell a Rat here!! For real :d
Explain Bruder L
4. Jaro
All these decisions are made at the expense of the workers!! I will not ask how much they are paid and how much is invested in their Security at work?
Its one thing reducing taxes for such companies and another to make them competitive in the long run. Its just not about taxes but also about the management!! One has to go deeper than just reducing taxes!!
What they have done is to waive the windfall tax. This is not the same as reducing the general tax burden on these companies. There is nothing preventing the Government from collecting the windfall tax in a future economic cycle should conditions allow the companies to make windfall gains. What they have recognised now is that the previously applauded windfall gains have been all but wiped out by the effects of the current global economic malaise. A windfall tax in these conditions would do little for increasing capital investment projects from these companies.
The taxes came in too late, these should have been enacted when KCM was making Billions every week. The need to control expenses is now, the VP will just go to open the conference and return to Lusaka,hard times are coming with the global crisis, the Government should lead by exmaple, let the Provincial Ministers attend these funny events as a cost cutting measure,even developed countries are cutting excess government costs. The end result is that no drugs will be available at UTH because funds have gone to trips.Can the Parliamentary Finance Committee review these critical issues rather than having a minister talk about a player being transferred to Isreal in parliament…
Astute politicians and business men use such events to engage in highly lucrative engagements with other governments and international companies. Being an African Mining congress it is appropriate that the VP attends. After all, the list of delegates is not a trivial collection of middle management but highly influential individuals who Zambia could do well to attract as the country seeks to accelerate investment in the mining and related sectors.
It makes little sense to me if it is based on a trial and error principle!!
The government will collect its taxes from somewhere else anyways!!
This “global crisis” is nothing new to Zambia when it comes to the Mining industry!!
Diversification (hate the word) is what was preached in the past years and now there is need for this move due to the “global Crisis”?
If what is based on trial and error principle?
YOUR WORDS “There is nothing preventing the Government from collecting the windfall tax in a future economic cycle should conditions allow the companies to make windfall gains”
This tells me that if the future is bleek then it was in vain!!!
Sounds like an experiment to me.
Bruder L, we are talking about a windfall tax here, this is not the same as tax exemption or lowering taxes for these companies. What would you rather do, tax them anyway and reduce their ability to invest? You are more likely to disadvantage the workers and the economy by doing that.
There is surely something positive about this move BUT I am only worried about the Companies own initiatives !! They will surely do little to dig out profits!!
The Profits made out of Mining started deteriorating even before the global Crisis came.
I will retire now and will follow up tomorrow if need be.
Cheers and thanks for your Views!!
[-o< Dear God, you gave Zambia a lot of natural resources but for the love of self and inconsideration for the poor, those that we entrusted to rule us have sold all the wealthy of the country for a song! When our children and children's children shall read and hear about the history of this country, they will be told of the bounties that once were the lot of this Country. Wallowing in poverty, they will wounder what the heck we did with our natural wealthy. Please God of love above, for the sake of the vulnarable who hold no destiny of theirs in their own hands, save this country from this loot! In your name, I pray, Amen! [-o<
[-o<[-o< Amen
” The taxes came in too late, these should have been enacted when KCM was making Billions every week. ”
And wouldn’t it be ironic if the same people who delayed the implementation of the windfall tax are now also the ones who are behind repealing it.
Zambia will have no democracy, as long as the people’s interests take second seat to the foreign mining company’s interests.
Maybe this could be a good move as the Mines would be brought back to life.Lets wait and see. 😕
Something is going on here :-w One mine should remain in Government hands!
Who is this Nathan Chishimba who is very happy at not paying tax?.Is he happy that the poor people in Zambia will continue to suffer?.Look at the PAYE tax, 35% of someone’s salary goes to GRZ,and yet the GOV will continues milking him through other taxes like VAT and fuel Levy,road tax,…etc..To be factual,there is no relief to a Zambian worker.He is also supposed to help his Family coz,the unemployment rate is too high.We are supposed to benefit from our mineral resources but what is happening now is the work of the Devil.People have become too selfish at the expense of God’s Children.Sure,Judgement day is coming,and we shall see them!
The problem with too much wave of tax is that the burden will be offloaded on other essential commodities, ninshi twavutika.
#1gc. Even when thousands of billions were collected there was no benefit for me and you. Just look at the deplorable state the mine townships are in. The only Zambians who benefited are the GRZ officials. Just ask the GRZ how that money was used. at least hospitals could have been improved and curtail SA evacuations of VIPs