File:Workers at Lumwana mine

The Citizen Forum says it suspects that government has secret dealings with the mine owners as evidenced by government’s refusal to reintroduce the windfall tax despite the continued rise in the price of copper on the international.

The price of copper on the international market has hit the unprecedented $10,000 level per tonne.

Citizens Forum Executive Secretary Simon Kabanda says it does not make sense for government to continue insisting that it will not reintroduce the windfall tax when the price copper price on the international market has continued to rise.

Mr. Kabanda noted that the Zambians need to benefit from the proceeds of copper adding that whatever government was trying to hide about its deals with the mine owners will be uncovered one day.

And Mr. Kabanda has urged government to take legal action against Mopani Copper Mines for flouting the law on remittance of tax to the Zambia Revenue Authority (ZRA).

Mr. Kabanda says reports that Mopani Copper Mines’ tax remittances have been inconsistent with the production output are disappointing.

He says it is not in order for the mining company to try to evade tax when it is already enjoying tax rebates on its profits.
[ QFM ]

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41 COMMENTS

  1. The MMD Govt. does secret deals/ trade off’s with Mining firms. These firms will sing afetr MMD is booted out. We know MMD gets campaign funds from them.

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  2. Let us reposses Mopani Mine if indeed they have been evading TAX on a large scale as reported. These Mines they will align to the new leaders tune after 2011 elections. They will sings as they always do when there is change of Govt.,

    Things will be revealed. We know Maxwell Mwale Minister of Mines and VJ are the in go between to raise or extort MMD campaign funds and funds for the MMD connvention. This year we must sort out MMD

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  3. Goes to show you that government is nothing but a dog and pony show. Government plays the role of being chosen by the people only to represent “infestors” and profits and NOT THE PEOPLE they PRETEND to represent. Democracy in Zed is fake, broke and has failed just like socialism and all the rest of ideologies. Government exists as an insulating layer between the haves and the have nots. Knew it all along. We the People should stop paying all forms of taxes and send governments packing.

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  4. Zambia can enrich itself with the re-introduction of windfall tax. Logically this is what the majority of well meaning Zambians expect from the Gov’t. Copper is trading at $10,000 a ton and the government is silent on this, naturally people begin to speculate as to why the Gov’t is not taking advantage of the high copper prices. Something is definitely wrong somewhere.

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  5. All the guys with contracts in these mines have connections to the MMD besides they re now busy raising campaign funds.

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  6. ZRA can follow up these mines on the tax evasion but there is no political will to empower them to do that. All the mines are doing what Mopani is doing. It even hurts to talk about this issue because our leaders will not do anything about it. Is there any legal means that can compel our politicians to do something in favour of the country? Honestly millions of $US dollars are going just like that…..just like that as if we are rich.

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  7. A foreign company would never appreciate windfall tax, when it has an easy option of creating an offshore account for a few corrupt leaders so that it serves money. This is when u begin to see govt ministers emotionally attacking windfall tax as thou its war, while squeezing taxes out of its citizens. Meanwhile the same investors even sit & laugh at zambains. One foreign director goes on to say ‘we came with a heart to make profit, pay taxes to develop zambia & pay zambians well. We are making profits, paying little taxes & not paying locals very well because we have govt support & are above your minimum wage requirements. As we deplete your resouces, know that we come from countries where we are paid well & govts support good paying companies. It isnt our problem my friend’.

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  8. The recent standchart news said the price is actually USD$10,122 some visionless minister will have to
    explain to Zambians how much tax do these mine owners pay as compared to the scrapped windfall tax.i.e.
    1.How much revenue is earned from company tax?
    2.How much revenue is earned from corporate tax?
    3.How much revenue is earned from mineral loyalty tax?
    windfall tax being a threshold was suppose to boost govt confers so that govt doesnt focus on borrowing unnecessary loans to build hospitals or contruct a good road net work for the country.

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  9. FATHER KABANDA NEVER TO BE TRUSTED JUST LIKE FATHERLESS BWALYA. KABANDA WHILE IN YOUR CATHOLIC COLLAR YOU UNDRESSED A CATHOLIC NUN IN HER ROBES AND SHAFTED HER USING YOUR BIG PIPE AND MADE HER PREGNANT TWICE THATS HOW YOU AND YOUR WIFE GOT EXPELLED FROM THE CHURCH. YOU ARE NOW SGUATTING A SMALL ROOM MU HOSPITAL HOSTELS. KABANDA HAVE AN IDENTITY PLIZ. HOW DID YOU MANAGE TO SWEET TALK A NUN IN BLUE INUFORM UNDRESS HER AND USE YOUR WEAPON OF MASS DESTRUCTION TO HAVE UNPROTECTED SEX WITH HER. YOU ARE SLIPPERY WITH YOUR FORKED TONGUE NEVER TO BE RELIED UPON

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  10. The Egypt and Tunisia way is the only option to GO if the elections do not bring about the total will and desire of the MAJORITY.

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  11. this is a load of rubish. let Simon Kabanda base his allegation on something else not on a difference in policy. zambian economists as well as citizens are divided on whether w fall tax would be good or not. just be cause Gov has taken a less popular policy position is not equivalent to the allegations of kabanda. let him having resources investigate and just find out facts instead of yapping any how.

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  12. The chinese mine owners are on record saying “They only know Rupiah and that the ministry of labour is on their payroll,and that whatever workers can say govt will do nothing.”This is evidence enough that Rupiah has secret dealings with mine owners. ONE DAY…..

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  13. Typical “African Leadership”; Blacker than black in their hearts. And when they make a few coins, they take it to European banks so that the assets can be frozen and be used to make Europe even richer. If those pretending to lead Zambia had love for the country, even for themselves, they wouldnt sit in their homes while resources are being taken for a song. So would you blame colonialism for our poverty? No amount of education has helped or will help Zambia to deal with this problem because the educated have proven to be the most cunning of thieves Zambia has ever produced. What a shame! No wonder its called a Black continent!!

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  14. We should not even wander whether the Government or the oposition have dealings in zambian mines.These guys are the ones who are giving tax free to the mines because they Know that they are the end beneficiaries.Who knew that Micheal sata has the are mine IN North Luapula Province.Who Knew that Ruphia has a hand in Lumwana and Kansashi mine.They pretend to sell the copper to the international markets while the money is brought in tier account via grants,donations,gifts,and so on.Very soon i wouldn’t be surprise to see Larfage Cement fall into the hands of the states or Ruphia in general cause i have seen the trails of the current regime.The governement is the only benefieriy of the mines revenue.to be continued>>>>>>

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  15. #3 BRAVO!!!
    WE NEED TO TAKE ADV AND DIVESIFY THE ECONOMY LIKE WHAT CHINA HAVE DONE.
    GROW THE MANUFACTURING INDUSTRY
    GROW AGRICULTURE INDUSTRY –NOT JUST MAIZE FARMING AS RB THINKS
    COMMODITY DRIVEN IS NOT SUSTAINABLE………….
    WHAT A PITTY!!

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  16. chaps like kabanda are interested and this catholic group have never supported a private driven economy. they want zambia to be like china where its the 2nd biggest economy and yet its people on average are more poor than a country ranked 100th. becuase gov owns everything. i have never heard kambanda and his catholic friends say gov the gains of less tax to mines go directly the miners’ payroll. they just support big gov and want us the pipo to be controlled by big groups like catholic church, Governments

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  17. If indeed Mopani Copper Mines has been under declaring its copper out then they should be severely punished. In Congo DR First Quantum was kicked out Kolwezi for same activities. What is so special about MCM. Kabanda could be right that the Govt officials have made secret deals with some mining companies to line their pockets. Where on earth can some one reasonable fail to reinstate withfall taxes when copper prices are at their highest US$10,000 per ton is good cash. At this rate the guys are going to mine more copper than before. Where is this Govt driving this country to prosperity or poverty? Lets not wait until this country is reaped off by these crooked investors. Some pipo are benefiting under our eyes. Blogers lets dig deeper and expose them. This is just too much plunder

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  18. If any person has facts other than specualtion, he/she should take necessary steps to report Mopani. Kabanda shud also bring evidence and report the dealings between govt officials and the mining firms to relevant authorities and not just speculate. If they do not act on his purpported revelation he should continue exposing them using his evidence. I only hope it is not just propaganda as Mopani also have a right to sue him if he is just speculating.Kabanda is no better than qualified staff at ZRA in tax assessment. The govt wants sustainable business growth for emplyment creation by attracting more investments in mines. Wud that be acheived if we introduced windfall tax. Variable tax system takes care of price fractuations and hence we benefit from high copper prices

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  19. It’s a pity that even with such straight forward and serious issues as this, some bloggers still want to trivialize them and bring in totally uncalled for personal and childish attacks. This is more so from our brothers in the diaspora, like #10 Shazza who don’t even feel the least of the pain we go through back home. Much of the monies the Zambians keep demanding would go towards social development projects as was in the days of ZCCM where we had good township roads, sports infrastructure and many other amenities. Kabanda is right and whether you are MMD or not, this is one issue that should receive all Zambians’ support. Please spare us your childish egos and help people see the truth for what it is.

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  20. #10
    shazza- Why in capitals. There is truth in this. Just take some time from your busy schedule and investigate instead of brushing this a side. The Beatle made a song called the FO O L on HILL. In this song that fool saw more things than normal people did such seeing those who were having sex in the bush at the foot of the hill etc. Kabanda may be unstable, but he can also see things that you may not see yourself.

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  21. #19
    Global citizen- Give us your source of information please, other you are the same as Kabanda or even worse.

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  22. #23 Tulemimona; you are spot on. Its really painful to see Trucks loaded with finished copper leaving neglected town like Mufulira. Even the roads these same trucks use are pathetic and then someone in Lusaka is opposing to windfall tax. What a shame!! If MMD wins this year’s elections, then we will go Tunisia’s or Egypt’s way.

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  23. in this debate about tax, it seems to me that lines have been drawn. it does not matter how much evidence is brought forward people will not change there minds as to “windafall tax or not”. greater silence has characterised the major political contenders. they know that should they make it categorically clear where they stand their maybe political and economical ramifications. so they are silent. WHY? but at least we know where RB stands on this matter. less debate has been centered on technocrast/ expert both in government and independents. the general population has condemed to depended on non experts like kabanda, father something and the likes

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  24. Do not even doubt that. These guys are handsomely oiled. And in Zambia never again put a PHD economist as minister of Finance and planning. Musokotwe is the most inept minister of Finance in the history of Zambia

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  25. No25 Deja Vu just simply google profile for china you will see that around 47% of chinese people live on less than 2 dola a day. this translates to over 600million people. now the point i was making is that i expect the second largest economy in the world should have people on average that are living generallly above poverty line.
    ukraine in the 2010 was listed as 100 on the list of the richest and poorest nations in the world. its poverty levels by 2008/9 were less than 12%. this information is on the net for you consuption.

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  26. FQM, they are even paying and making the audits themselves….

    It’s to tell you how commiteed they are…to the ‘people’…of course !!!

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  27. Here is what can be done:

    1) No one pays any taxes. That will very quickly fill all the jails, as it is impossible for the government to jail all Zambians.

    2) People block Mopani Mine – like in Tunisia and Egypt. Get out onto the streets and demand that the tax burden is shifted from the people onto the mines.

    3) Demand that the opposition gives complete assurance that if they are elected to power, they do not have the same corrupt deal that they are going to engage in with the mines. They have been very quiet on the windfall tax.

    4) Start renationalizing the mines if they do not comply.

    The mines have expatriated at least $10 billion since 2004 – money that has not been reinvested in infrastructure, basic services or job creation projects.

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  28. 14, 15, 16 – racist crap that should be deleted by the moderator.

    8 Tommy C progressor says:

    ” As we deplete your resouces, know that we come from countries where we are paid well & govts support good paying companies. It isnt our problem my friend’. ”

    Then your rhodie friend doesn’t know the meaning of the word responsiblity.

    And it is our job to make it his problem. You cannot go to a country that has 40% malnutrition, and steal $2.5 billion a year. He should be hanged for murder.

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  29. #30
    Global citizen _ Thanx, but %age wise they are better than Zambia at 80%.Also at $2 per day they beat Zambia at less than $1 per day.

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  30. # 8 your are right. Now we have these investors and expartriates calling us ” These STUPID ZAMBIANS” ouch it hurts so much ! Are we really that STUPID that it shows ?

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  31. I would like to be murder by FQM and their gays of the government in front of world….
    Just to prove to my African family how much i love and respect them…..
    And to give you that chance to be listened,admired and developped… at least !!!

    JUST WANT TO GIVE MY BLOOD FOR YOU

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