PF to relook at the taxation system for mining companies

PF representative Bob Sichinga
PF representative Bob Sichinga

The Patriotic Front has pledged to ensure that Zambians benefit from the rich mineral resources the country is endowed with.

PF representative Bob Sichinga has said that  the PF in government will not allow a situation where the country’s mineral resource does not benefit the Zambian people.

Mr. Sichinga said that  PF will relook at the taxation system for mining companies in order to ensure that mining companies pay according to the profits being made.

He further added that the Michael Sata led PF government party will ensure that the national budget is also re-aligned.

Mr. Sichinga was speaking on a live MUVI TV discussion programme monitored by QFM last evening.

And speaking on the same programme, UPND aspiring parliamentary candidate for Katuba Jonas Shakafuswa said the UPND will ensure that more emphasis is placed on health delivery in the country.

Mr. Shakafuswa noted that there is a lot of wastage of resources by the government which has resulted in other sectors being affected.



  1. .. PF will relook at the taxation system for mining companies in order to ensure that mining companies pay according to the profits being made.

    Wow, I wonder how much they paid this so called economist to come up with that line. Surely even a grade 7 knows that companies pay Tax based on the profits. That is happening today. What is new about what youy said.

    Shows how confused PF is. They can’t pronounce windfall Tax because when the Magande under the leadership of the Late President Mwanawasa slapped trhe wind fall tax on the Mines, PF is on record of having opposed that. The Government removes it and now they are confused. Party with Economic policies whatesover

    And who is Bob Sichinga in PF. Why do they just call him representative. No title or portfolio?

    • Read properly my friend…Mr. Sichinga said that PF will relook at the taxation system for mining companies in order to ensure that mining companies pay according to the profits being made. U are such an ignorant person, dont comment if you dont know anything..Bob is talking about windfall tax wihich your RBISH govt has refused…

    • Chief bootlicker, You have just exposed your ignorance here. The statement is clear and Bob wants the system to be properly managed.

    • abekala kulusaka, you have no idea how much copper we produce every single days and mines don’t pay tax…what a pity of mmd bootlickass

    • In UPND we say that we will reintroduce windfall tax and also compel mine owners to bank some of their income locally to boost foreign exchange reserves. We also want these mine owners to partner with Zambians to establish value adding industries so that we stop this nonsence of exporting raw copper.

      Yes, who is Bob Sichinga in PF? And why is he the only one speaking on behalf of PF on technical issues (looks like the guy is being paid). Anyway, a propsal written by a consultant is the most difficult to implement. PF should be worry of this situation but I know no one cares in PF. That is how they are.

    • @BMC i hate you guy, cause i have neva seen objectivity in any of your comments, HH is neva near to presidency and this is his last chance for HH and UPND, Narep will be the way forward cause chipimo has fine brains as compared to your clown HH.

  2. Ati pa fyoto!pa fyoto ifinshi?these chaps are the most inconsistent when it comes to mine taxes!when the late levy mhsrip brought the windfall one satana is on record in the past tabloid it’s there for all to see that he opposed it,now herb did away with it and here we are making noise as usual,kwena this is real opposing at it’s best they really define it!I think that’s there destiny to be opposers at everything even the wind direction kuti ba oppoza bena!Na phd in opposing we can gladly give them napwisha!

  3. #1 .Read properly my friend…Mr. Sichinga said that PF will relook at the taxation system for mining companies in order to ensure that mining companies pay according to the profits being made. U are such an ignorant person, dont comment if you dont know anything..Bob is talking about windfall tax wihich your RBISH govt has refused and people are suffering while these mines like chinese own are paying zambians K500,000..BULLSHIT can you feed your family with this???

  4. # 6 your question is like some one whose never been 2 school. Ask graduates business, the will teach you how benefits trickle down to poor people when the proper system is in place.

  5. On the copperbelt there is no miner that gays paid 500pin period mwilabepa bane!pf are js inconsistent so cannot be trusted with the economy!like I wrote earlier certified opposers!

  6. Here the equasion is simple bloggers. Wind fall tax was removed when the copper prises started going down and they was world economic melt down. Now the price of copper is very high thats why we want the winfall tax to be re introduced. Simple as ABCD. Don’t blog for the sake of blogging overlooking how we are being exploited by the so called investers.

    • So what exactly is widfall tax? And by the way how does that solve all of Zambia’s problems particularly those relating to poverty? It seems to me that although there is a legitimate outpouring over this so called windfall tax there is equally misplaced expectations. For example, windfall taxes mean mealie meal for all. i do not think so.

      Might there also be envy and xenophobia on the part of some Zambians.

      Fiscal policy (taxes included) is always a toughie because of capital flight risk. Look at the USA and their supposed failure to tax the rich more. Obama, in the face of opposition from the Republicans, has failed lamentably to change the taxes on the rich.

  7. At #1 Ba Sicinga naba Sata ni pa chisewele ka!!!!! mwaibala bwanji kuti mwana wa Sata etolewa na mwana wa Sicinga. So they have to support each other.

  8. This economist called Sichinga is missing the whole point. Firstly he should get it into his head that what he is articulating here, Sata,Kabimba, Nsanda and many more in PFdo not understand it and wil never implement the same or give him chance. Secondly the economist should be talking about policies that will make the cost of copper production lower as compared to our competitors such as DRC, chilein, and recently Tanzania and others. Talking about how to share the final out come of our mining industry before naturing it and making it low cost prodction will lead to mining houses fleeing from Zambia ..

    • You are afraid of people that are making your country poor? Wake up and look at the state is in economically. If they flee, someone will always come, even the business minded diaspora now. You need money before you can nurture anything. PF whether you are in power or not push for the taxation issue. Don’t only say it during election year.


    • Mudala I live in kite my friend works there so I don’t know who’s fooling who?u ste in lsk so am sure u guessed the figure

  10. #5,7 Thanks for your efforts in trying to educate the ignorant #1 and #6. ignorant people are very dangerous!!

  11. #5 You have my support. Spot on. The Mining companies are paying a reaping a l of money. In economics is called supper profits. When the so called investors tok over the mines. They had a break even selling price. Now this has gone above 100% increase. We in PF will demand that we shall in take part in this joy by taxing them more on these super profits. Those that are argueing with this line of thoughts. Im afraid they do not maybe live in Mining towns to see the neglect. Mufulira – Kitwe road has become so narrow and a death trap. Only fit for bicycles now. meanwhile Mopani moves it’s billions of dollars of copper through that road.

  12. Ba Bob Sichinga, once a great mind whose IQ is diminishing.Truly if you hang out with riff ruffs even your analysis capacity degenerates.

  13. “PF representative Bob Sichinga has said that the PF in government will not allow a situation where the country’s mineral resource does not benefit the Zambian people.”

    Zambia and zambians first, pabwatoooooooooo……

  14. No 7

    You are the one thinking like you have not been to school. People in Zambia are suffering not because of the Windfall Tax. Even at this moment Zambia’s revenue as a country is enough to stop the suffering of the people if you had proper leaders. Your wishful thinking is that the Windfall tax will stop suffering…..  thats a pipe dream. You need to think beyond being a PF blind follower. In my mind PF do not have the leadership who can stop that suffering you think will be stopped by the Windfall tax

  15. Long range planning does not deal with future decisions,it deals with the future of current decisions.Starting with that premise PF might want to relook at this decision they intend to relook.Does it have a future?

  16. #1,6,8,2..Gentlemen, you are not going to mislead us.we know what you are up to.No amount of propaganda will stop us from seeing the wrongs commited by MMD.

  17. There are people on this list who appear to be delusional – that windfall tax will somehow get them out of their quagmire.

    The reality is that in Zambia today power is still solely vested in capital (and not labour) and technology. Unfortunately for many Zambians and owing to the poor education (low HDI) in the decades gone we lack both. In other words there are no Zambian companies that are capable of large scale projects that copper mines are.

    The very poor understanding of the current worldview shown by the likes of Sichinga (although he may be politicking) is worrying. It is populist at best, if not opportunistic.

  18. MMD failures, just accept that mwalinaka and thats why Zambians are booting you hard out of office on 20th Septemebr 2011 and Sata is the best man, we all know this. Viva Sata and PF

  19. Just let RB continue ruling. Why are these telling us fake stories of RE-LOOKING at Taxation! RB is changing the face of Zambia and you guys cannot appreciate because all you want is to go to Plot 1, under whatever circumstances. Viva MMD Viva……….!

  20. It is so hopeless when ignorant people jump on the bandwagon and speak utter rubbish!  What is in a name?  Does Sichinga or the Patent Fascists under SATAn know the difference between Windfall Tax and the current Variable Tax?  How come Kansanshi Mine paid tax of $360m two months ago if mining companies are not paying taxes?  This discussion reminds me of a fool who suggesting in the 1990s that the Zambian Kwacha could be stronger if Bank of Zambia became a Reserve Bank like in Zimbabwe.  It is the substance not names/terms/titles that matter, chipuba!!

  21. Am I wrong to suppose that those agitating for windfall taxes are in fact seeking a welfare system? In other words money in your pockets within 90 days.

    I generally agree that Governments should always seek equity and a level playing field so that if the mines are undertaxed then surely, in an orderly manner, introduce an escalator tax system, but for all taxpayers. Welfare on the other hand is a totally different matter. It has to be sustenable in the long term and not rise and fall on the whims of the price of copper. It also seems to me that as a nation we remain little informed that we are a capitalist country. Many of our people and cultures are sadly of a communist mindset. We are also far too JEALOUS of others.

  22. No genuine miner will dare waste his vote on RB and MMD considering the untold misery that miners are subjected to. The time for miners to reject modern slavery of MMD has finally come and its 20th September 2011. Let MC Sata revamp the Zambian economy in a planned and systematic manner with Zambians being at the heart of every policy and decision. DONT KUBEBA, Lets go PF viva Sata. Lets vote enmass for PF countrywide and bury MMD (basakala nyongo) for good!!

  23. Sadly Mr. Sichinga has said nothing new either.

    If he really wanted to help he should have stated unequivocally that the PF Govt would introduce windfall taxes, whatever that means. And even more importantly how the PF will create high value jobs for all Zambians. JOBS, JOBS, JOBS.

    Mr. Sichinga is not even an aspiring candidate in the impending elctions so on what leg is he standing?

  24. When we ask , why is our infrastructure so poor? GRZ always respond to say,we don’t have enough money to put up good infrastructure.we know that windfall tax can help to beef up the state coffers which can translate into good roads,good schools and other social services.why borrow for infrastructure development and not just get the income from our natural resources?we all know that ZCCM made significant contributions when it comes to infrastructure development.they constructed the all copper belt even when copper prices were very low.with copper prices above $8000,how much money are these investor making? what is zambia getting from it’s natural resources?.

  25. Uyu mudala wa theory,ma ma ma! in kafue they would rather salute a dog than this cheat. he talks big but acts contrary to what he talks.good thing is that sata can’t and will never never win 
    any presidential election.

  26. ARTICLE 4

    The Party shall wage a relentless struggle against all domestic and international forces of reaction.
    It shall fight for the eradication of Capitalism, with its offshoots; poverty, with its offshoots of
    Hunger, Ignorance, Disease, Crime, Corruption and the exploitation of man by man.

  27. @Shimaini,

    Those miners who are complaining forget that they would actually be unemployed if it weren’t for these policies. The reality is this in the time that RB has been in office has there been tangible development? Yes there has.

    In the time during with RB has been president what has PF done in the towns where they mayors, MPs and counselors? What sweeping change have they created?

    From my experience PF is great at doing one thing, opposing the government regardless of what its doing. Like someone said when LPM established windfall taxes PF was against it, when they take it away they now say they want it back. A more equitable tax already exists; variable tax. The challenge is to stop illegal tax avoidance.

  28. PF must be praised for establishing somewhat of credible opposition party. But they have no original thoughts, their leaders aren’t transformational and its highly autocratic.

    PF has been built off Sata’s promises to his various supporters. Promises to his MPs that they will one day be the ruling party, promises to his supporters that he will bring some form of vague change. If the number of promises that Sata has made could be measured I’m sure they would stack up to be a very tall tower. My point is this, all of you PF supporters seem to ignore the fact that Sata cares most about becoming president, your support and that of his cadres, and his promises are a means to an end. PF doesn’t stand for anything beyond making Sata president.


  30. @BAKULU,yes you are wrong when you assume that us calling for a good taxation policy are seeking a welfare system.I know you understand that copper is a diminishing asset and as a country we need to benefit from our natural resources.what will remain for zambia when copper is finished? is there anything tangible to point to and say our copper did this and that? or will just remain with craters.we may not need more more in our pockets but we deserve better roads,hospitals with staff and medicines available,schools with teachers,books and desks.have you been to the copperbelt where mining activities are done? are you happy when you drive in bad roads?

  31. I watched this programme and as always Bob was very articulate. Indeed why fail to tax the mines and then squeeze blood out of a lowly paid civil servant???

    A responsible Government would ensure that tax is fair and broadbased, minrals are wasting assets and the country needs to benefit from that ebfore it is too late. RB and his government have earned themseoves a boot and we dont wat to use Arab Spring formulas on them, the ballot will do!!!!

  32. Aba ba sewele babili (SATA and Sichinga) basebela chabe.
    They are just joking;
    If Sata was serious he would have won elections by now, but cant atticulate issues. All he says is money in your pocket, 90 days, fly-over bridge, man-of-action, clean UTH, etc; so us what do we get from such a man.
    So to show you clearly that asebela chabe, he teams up with his asebele so they can share RB’s punches because they are gona be heavy.

  33. #37 Mendez, I started my career in the mines, actually. And I have to tell you that ZCCM was a sorry soul not only because of the price of copper, but because of patronage i.e. political influence. The mines were expected to do everything at the time, but even worse was the fact that mineworkers were like children. We drunk Milo, ate kampompo (buns), were supplied with detergent and were paid mid-month pay. Under ZCCM mineworkers were on survival mode and sadly many understood little of their demise. The enlightened mineworkers left for pastures anew in droves. There were no mortgages nor was capital accumulation encouraged then. If you were thinking capital you were alone. Cont’d.

  34. Sata is the only candidate with Zambia at his heart. What most people don’t get is that Sata is a performer, an achiever, action oriented. People forget very fast. Barely four months ago the people’s complaint against the incumbent was laziness, aimlessly drifting around the globe on the pretext of wooing investors. Now scared of loosing his job he is now fanatically busy with cosmetic and unplanned kind of development to hoodwink the unwary into voting for him.

  35. We have always said that this Sichinga is a PF cadre and no one listened….you used to say that no he is an independent political/economic consultant. Now look, he has come out clean to be labeled as a PF representative. Ba PF that’s why muli fikopo. Always changing stances

  36. The proble SATA has is that he is too wishfull.
    He does not link what he says to reality.
    Ineverything there is what we call ”my desire” and what we call “reality”.
    These two dont always agree; and what man does is to create a way to bring them close.
    Sometimes they refuse to get close.
    Take the example of Obama in the last US election; the man had a good plan, good strategy, good policies, etc.
    But where is he now?
    Reality includes the obstacles you face, those within your control and those beyond your control.
    Opposition can equally be an obstacle, civil service, civic authority, technocrats, the police etc including the public can be an obstacle that can make your plan fail.
    obviously even international and global economy can fail you.
    So dont promise too much.

  37. What most bloggers are forgeting is that these mining cos are driven by profit motive. This explains why when negotiating for mining agreements the issue of taxation and royalties always give those with capital an upper hand i.e capitalism, which leads to poor countries signing long term agreements which can have divastating concequences if abrogated. Introducing windfall is not the problem, the problem is the govt wil be sued for breach of contract and mr. Sichinga knows this and he is playing to the gallary. Thank term agreements which can have divastating concequences if abrogated. Introducing windfall is not the problem, the problem is the govt wil be sued for breach of contract and mr. Sichinga knows this and he is playing to the gallary. Thank you.

  38. This was not ZCCM’s fault entirely, but a systemic problem created by Kaunda with his leadership code, for example. The leadership code had its upside of course – like checking corruption, for example. but you cannot deny that as a people we were under shackles.

    I personally prefer the current system where talented and hardworking citizens can flourish. It’s the individuals that create wealth, and not Governments. In fact I am very weary of GRZ borrowing any money unless it is for investment. There are always going to be poor people in Zambia. Windfall tax or not.

    Yes, perhaps the miners should pay more tax, but it seems to me to be a very narrow argument and I fear borne out of pettiness for many a Zambian.

  39. wether you like it or not SATA PF is winning. just on opn polls of TBN, ZAMBIAN ONLINE General views pipo want change. it long time and this time has just come. we had already decided in 2010 we were just waiting for this year.

    DONCHI KUBEBA NI ZEEEEEEEEEEEEEEEEEEEEEEEEE. Unless those you receive the brown envelop are the ones who want to continue. imagine the Whole family voting for PF. From the great grandfather and mother to the new voters. ABOUT THAT . 2011 IS FOR SATA AND PF. State House is not number one but putting three meals on the table for whole zambia, jobs, right of the media, women, children, constitution and more food then SATA WILL SLEEP IN THE STATE HOUSE AFTER 90 DAYS. imagine MMD are making roads in 105 DAYS . SO 90 DAYS IS OK. VIVVA PF

  40. even in the home or be it in a classroom ,or at a company level, when something is of age and it has been over used ,everyone looks forward to a new thing to replace the old one…sososos movement for mad dogs has outlived its usefulness.LET THEM GO ..KUYABEEBELE UNO MWAKA BAFIKALA

  41. even in the home or be it in a classroom ,or at a company level, when something is of age and it has been over used ,everyone looks forward to a new thing to replace the old one…sososos movement for mad dogs[ MMD] has outlived its usefulness.LET THEM GO ..KUYABEEBELE UNO MWAKA BAFIKALA


  43. @BAKULU,yes individuals must create wealth and the government must provide a conducive environment for people to do’s not only lower tax for business men but also good infrastructure.good health services and affordable energy.How can i transport my goods to the market when the roads a bad? extra overheads because you need to service you trucks very after a month.Now where will government get the money in order to improve infrastructure?

  44. @FINE. You speak fine indeed.Thats the truth about reality and plans.That is why they say,”if wishes were horses all of us would have been riding them”

  45. If I were Sata this is what I would look forward to doing:
    1) Relax the cost of production by lowering tax to increase productivity.
    2) Strengthen labour laws to do with minimum wage linked to profitability of individual companies to ensure all workers for good profit companies are above the minimum taxable threshold.
    By ensuring (1) above I will make it easier for the companies to comply with (2).
    By ensuring (2) I will be making the employees happy and motivated for productivity while at the same time increasing the BASE for PAYE; remember that PAYE is the most sure and reliable tax any govt can get.
    By ensuring both (1) and (2) I will be making both the employer and the employee happy promoting industrial harmony.

  46. Now you SATA, by increasing TAX on the employer how do you hope to enhance better paying jobs??
    Dont you know that an over-taxed employer makes less profit and is less willing to pay well??
    What is the value of reducing PAYE (to leave more money in the worker’s pocket) when the employer does have the capacity to pay the worker good salary??
    What is better about reducing PAYE on a worker getting K3M compared to taxing 30% a worker who gets K10M??
    Please SATA, work out your maths, if you have any and tell us which one is beneficial??
    Any clever grade 7 will tell you that you are better off taxing a worker 30% on his/her K0M, than have a worker get K3M and not tax them because in the former both the worker and GRZ have more money in their pockets. In the laterboth lose out!!!!

  47. Any clever grade 7 will tell you that you are better off taxing a worker 30% on his/her K10M, than have a worker get K3M and not tax them because in the former both the worker and GRZ have more money in their pockets. In the laterboth lose out!!!!

  48. DOCHI KUBEBA… Check out Dandy Krazy’s new song titled DONCHI KUBEBA on YOUTUBE. Enjoy… and remember DONCHI KUBEBA SSSHHHHHHHHHHHHHHHHHHHH

  49.  @SHIMAINI,it’s not a big deal if the miners dont vote for rupiah,we all know that among the miners that’that’s where you find people who are backwards and illiterate..they can’t distinguiish nonsense from sense.there way of dressing is pathetic and worrisome they drink anything so long they get drank and finaly they sleep in cabins

  50. PF need to be specific about their policies especially on taxation which is a sensitive issue. Every economist knows uncertainity stops people investing…in this case a vote. Are they for windfall tax or not? What tax regime do they want to introduce if they don’t use variable or windfall tax? UPND also need to give specifics on how they will reduce the wastage of resources by the goverment, and what their tax policies will be.

  51. Bob Sichinga, have you consulted Mr Sata? If you have not, then everything you are saying is hogwash as we know that Mr Sata has stated categorically that he is very comfortable with the existing mining tax regime. He stated that PF will just improve on its administration.

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