Konkola Copper mine shaft four in Chililabombwe Township

PRESIDENT Banda has maintained that Government will not re-introduce the windfall tax for mining companies operating in Zambia.

Mr Banda said the re-introduction of the windfall tax has the potential to stifle the growth of Zambia’s mining sector.

“The abolition of the windfall tax will remain intact and as Government we shall not listen to those calling for the bringing back of this tax. Let them just watch what Government is doing to attract more investors to the mining sector,” Mr Banda said.

The President was speaking in Chililabombwe yesterday when he officiated at the groundbreaking ceremony of the Konkola North Copper Mine project.

Mr Banda said mining companies are paying a lot of taxes such as mineral royalties, property rates and other taxes.

He said the abolition of the windfall tax was aimed at paving way for a manageable tax system for the mining sector.

“As Government, we have the responsibility of doing what is correct for the country, which is to attract more foreign investors in our mining sector.

So as President I want to reiterate what the Minister of Finance said that windfall tax will not be brought back,” Mr Banda said.

[Zambia Daily Mail]

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18 COMMENTS

  1. Banakudyesamo kaili……………………The Govt isnt even bothered to listen to other opinions.This tax is confined to profits thats why its a variable tax.We know that some people are on Mining companies payroll.

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  2. Jockers running the country.Heaven knows how much ends up in their private accounts for blocking this course.

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  3. Jockers running the country.Heaven knows how much ends up in their private accounts for blocking this course.Chile is a good example.

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  4. Fellow patriotic Zambians, Windfall taxes were meant to benefit human beings and Zambians in this regards. How do you expect “watch dogs” to re-introduce windfall taxes? Their major is who,who,who,who

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  5. I have always been against a poor person becoming president. They always try to make up for their failures in life and want to get rich hurriedly.

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  6. I have no doubt in my mind that this government does not understand what windfall taxes are and how they are applied? What should be contentious as of now should be the rate of windfall taxation and surely not re-introduction!!!

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  7. On the other hand PAYE remains the highest. No wonder the domestic electricity user pay more than industries. I poor will get even poorer while people making huge profits remain untaxed

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  8. thats what happens when U have Visionless head in state house..lord have mercy,he nows not what his doing!

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  9. RB ask Musokwatwane why he didt advise LPM against windfall tax. Ask him why he didnt articulate the issue the way he is doing now.The answer will be BLIND LOYATY. The rest you can add.

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  10. ATTORNEY General Abyud Shonga has revealed that the government proposed to remove the abuse of office offence from the Anti Corruption Commission (ACC) Act because it has existed unconstitutionally.

    PEOPLE CAN YOU BELIEVE THIS WAGWASH? HOPE THE WONT CHANGE WHEN RB IS SENT BACK TO HIS FARM

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  11. Splaka, ” Sounds like someone’s pockets are being lined by the mining companies. ”

    I estimate that they are ‘contributing’ about $200 million a year to the MMD. Cheaper than paying $1200 million in taxes.

    Even without the Windfall Tax, with the current business tax at 30% (at $2.4 billion or more in profits, that’s $720 million) and mineral royalties tax on revenues at 6% (with a turnover of $5 billion, that is another cool $300 million), the mines should be paying $1 billion in taxes. They’re paying $50 million.

    Corruption pays for foreign mining companies, and the sheepish MMD are more than willing to take the bribe, even if it means cheating their fellow countrymen out of $900 million in tax revenues and services.

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  12. Just who is benefiting from these mines? and the president doesnt seem to know what is good for Zambians , but for himself and his family alone oh what a shame

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  13. members of GRZ don’t care zambians !
    they prefer no put windfall taxes,
    they prefer no ask dividend for zccm-ih,
    they prefer zambians in poverty

    with windfall taxe GRZ could receive more than 400 M$ per year
    with dividends for ZCCM-IH GRZ could receive near 800 M $ since 2005 and with the increase production and copper with h more than 350 M US$ each year !!
    dividends is a du, why zccm-ih take between 10 and 20 % in each mine ? for pleasure ?
    GRZ think that it’s difficult for zambia to use money ? it’s the reason that they prefer no ask this money for GRZ ?
    WHY Zccm receive only RIDICULOUS dividends ?
    Why zccm-ih no published its annual resultat since 2005 !
    because in this results you’ll see that the sum is very important and you’ll see that GRZ is more that that a…

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  14. You’ve got every reason to take this s’tupid president not back to his small farm in Chipata but to Mukobeko. This is worse than genocide.

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