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Friday, February 21, 2020

Mining tax revenue above target

Economy Mining tax revenue above target

ZRA Commissioner General Christicles Mwansa

THE revenue from mining company taxes collected between January and August this year is above target by K265.3 billion, Zambia Revenue Authority (ZRA) commissioner general Chriticles Mwansa has said.

Speaking at a Press briefing in Lusaka yesterday, Mr Mwansa said ZRA recorded an overturn of K503 billion against the target of K238 billion in mining company taxes in the period under review.

He however said that Mineral Royalty collections were below target by K8.3 billion having registered an outturn of K249.4 billion against the target of K257.7 billion.

Mr Mwansa said the reason why Mineral Royalty was below target was because the tax was based on what a particular mining firm was able to sell and not on production.

“This is based on what is sold and may not answer to production. I don’t want to believe that this is below target as things may change by the end of the year,” Mr Mwansa said.

The mining audit was progressing well and ZRA had so far conducted the audits for Kansanshi Copper Mines, Mopani Copper Mines (MCM) and Konkola Copper Mines (KCM).

Mr Mwansa said there were some gaps in the audits which were currently being addressed.

Meanwhile, the ZRA collected K10.2 trillion in gross taxes during the same period. Mr Mwansa said the refunds stood at K2 trillion representing 19.8 per cent of the gross tax revenue.

He said the net tax stood at K 8 trillion against a target of K7 trillion, thereby registering a surplus of K542.9 billion.

“This outturn was largely on account of strong performance of Pay-As-You-Earn (PAYE) and company tax. For the year to date period ending August 2010 compared to the same period in 2009, the trade taxes were above the target in reversing the poor performance last year,” Mr Mwansa said.

He said the increase in trade taxes revenue was attributed to the growth in business volumes where taxable transactions recorded a growth in the value of duty purposes of six per cent as compared to the same period last year.

Mr Mwansa said in the third quarter of 2008, the Government commenced the process of acquiring additional scanners for Katima Mulilo, Kasumbaleasa, Kazungula, Mwami and Nakonde border stations among others.

He said such investment was expected to increase revenue for ZRA. Mr Mwansa said last month, ZRA officers undertook site visits to China to familiarise themselves with the new technology and how it could be applied in Zambia.

[Times of Zambia]

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  1. this will not go well to some petty politicians who hoodwink the minority of citizens. thats why IMF says our economy is on right track, good revenue collection, stable currency, bumber harvest, tourism and active construction and mining industries.


  3. # 2 Don’t be petty, can you please convert that in US$ Dollars and see how much an ordinary Zambian can benefit from that if it can take them for the whole year. Just a single american can with one album can can make that ( ask lady gaga ). We have resources God gave us for free but we are beggers with the International community – Shame Shame on us.

  4. Let me understand this Criticles. Are you saying that out of mining which constitutes 85% of our GDP, exports & FOREX earnings, we have only got $110million (K583billion) out of it for the whole year so far????? and that this measley amount has contributed peanuts to total of collections ofK8trillion at only 6%, when comparatively mining and mine related revenues (taxes + royalties) should contribute at least 70%!!! (K5.6 trillion kwacha)… We are getting robbed by these foreigners and you have the guts to announce this!!!!!!!!!!!!!!!! please criticles.. to give us a clearer picture.. please strip out of the rest (K8trillion less K583billion) = K7.5trilion the component that relates taxes (PAYE etc) to all mining and mine related cupply companies. I don’t believe your numbers!

  5. It is interesting that revenue from mineral royalties was below target. The reason that Mr Mwansa has given does not hold water. BoZ shows that for the same period, all production was exported. So what is he talking about when he says not all produce was sold?

    Someone please help. Where can I find statistics on Zambia’s performance in 2009 per sector? I tried the CSO website but it seems to have been taken over by iConnect

  6. #5 Digga, I wanted to do a similar analysis like yours but I can’t seem to find production statistics per sector for Zambia. Unbelievable! What are CSO and BoZ there for if they ca’t readily avail this info to the public? We need to be serious as a nation. There is a huge cash cow lazily crazing in the room and we don’t want to milk it. Instead, all resources are concentrated on P.A.Y.E from already poor workers. It is like that parable David was told when he grabbed a soldier’s wife. This is what is happening in this country, and some people want us to be happy about the situation.

    In fact, I opine that whoever thinks what we are getting from the mines is adequate, is the pessimist, because we as optimists think we can do better!

  7. #4
    who is lady gaga to be compared to zambia. for once learn to appreciate the positive points your country makes. the economy is in shape and we feel it. maybe if you come out of hillbrow, alexandria or soweto you will be able to see. unless you are a med doc in southafrica otherwise you just languishing

  8. #3 yaya
    i will check bbc country profile on zambia and see what those colonisers think of us. the fact is nearly a decade after we freed ourselves from them we still stand as a country and united. they should care more about taliban, alcaeda and innocent young british boys dying everyday in iraq and afghanstan. they are a troubled nation and george bush who took them to hell in iraq is enjoying vodka in texas

  9. “This outturn was largely on account of strong performance of Pay-As-You-Earn (PAYE) and company tax. ”
    Just admitt that Zambian workers are subsidising the so called Investors.If you analyse most of these mines,they have very few employees,the bulk of the workforce are employed by contractors with poor perks.
    Mr Mwansa,what about the Withholding taxes and medical levy let alone the so called carbon tax?
    Its a pity half of that might go to presidential trips

  10. oh no i know where that surplus came from poor zambians that have been over taxed sure a car for $2000 pays $1500 as tax where on earth come on gays

  11. fools, have u ever seen a teller with a surplus…come on guyz be resonable…u just rejoice without knowing where the surplus is coming from. so iwe chi YAYA, ne nshina fye, ukokwine.

    ka criticals ka cousin ka kwa bin laden,,,,, we shall cut off that mostach,,,or set it ablaze

    watch out…

  12. (5,000K/USD)

    Total: 10.2 trillion ($2.04 billion)
    Mining: 503bn ($100.6 million)

    In other words, the mining companies contributed $100 mn to the ZRA’s $2.04 billion revenues. That means the mines contributed 4.9% to tax revenues, even though they are a $5 billion industry.

    The mines are getting a special deal that the workers are not getting. This is daylight robbery.

    Mineral Royalty: 249.4bn ($49.88 million)

    This is interesting, because Mineral Royalty tax is 3% of turnover, and the mining industry has a turnover of $5 bn, so 3% should be $150 million, not $49.88 million.

  13. Considering that Minister Musokotwane is also a non-executive director of ZCCM-IH, he is in an excellent position to explain why ZCCM-IH does not insist on collecting all the dividends that are owed to it.

  14. From The Post today: Daka explains $140 million ADB loan to pay farmers, By Kombe Chimpinde, Thu 16 Sep. 2010, 14:30 CAT

    In other words, they have just borrowed more money from the African Development Bank to pay farmers ($140mn), than they collected in taxes from the mines ($100mn).

    This is outrageous, because we are paying for that in the store, through a devalued Kwacha.

    No one who will not tax the mines to the max and treats them as their friends is a TRAITOR to the Zambian people.

  15. 10 Wanzelu ” Just admitt that Zambian workers are subsidising the so called Investors. ”

    Absolutely. Because of neoliberal economics, there has been a shift in the tax burdon from the corporations where it belongs, to the workers.

    And on top of that, they want another billion above the 2004 budget. Well for an extra billion dollars, we the people can get universal healthcare and universal education, cheap loans for entrepreneurs and infrastructure that works.

  16. #MrK sounds analytical thinking there mate…. Indeed we have TRAITORS for Leaders… I honestly believe no more mineral exploration until they have gone or died..

  17. Digga, ” I honestly believe no more mineral exploration until they have gone or died.. ”

    Or ‘donor aid’. I would like to see ‘donors’ explaining to their taxpayers why they are paying one cent, when the Zambian government refuses to collect taxes from the mining industry.

    The real tragedy though is that we’re on the clock. High copper prices are not going to last forever. And without economic diversification, we are going to see GDP slump back to where it was before the mining boom.

    This is why it is so important that the PF-UPND tax the mines to the fullest extent, and do not come out with flip-flopping stories attacking the windfall tax.

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