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Government urged bring back the windfall or the mineral royalty tax

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The Civil Servants and Allied Workers Union of Zambia has asked government to reintroduce the windfall tax and reduce the tax burden on other sectors.

Union president Davy Chiyobe says government should bring back the windfall or the mineral royalty tax for the country to benefit from the increased copper prices on the international market.

Mr. Chiyobe told ZANIS in an interview in Lusaka today ahead of Friday’s presentation of the 2012 national budget that the country needs to benefit from the copper sales which he says is the number one income earner by introducing the taxes.

He noted that Zambia has not benefited much from the copper mining industry adding that this has resulted in government charging the ordinary Zambians with high taxes.

Mr. Chiyobe said there is need for government to find resources to finance programmes like infrastructure development and improved conditions of service for public service workers.

He has since requested government to also reduce the pay as you earn-PAYE tax and also increase tax income threshold from one million to one point five million Kwacha.

Mr. Chiyobe explained that the PAYE which stands at 35 percent is too much and suggested that it be reduced to about 25 percent.

He has meanwhile asked government to set a date for the commencement of negotiations for improved conditions of services for public service workers.

The Civil Servants Union President said the current collective bargain ends by December 31, and that there is growing pressure especially from the general membership who want to see new negotiations commence.

He has since advised government to come out in the open and state their position regarding next year’s conditions of service for public service workers.

[ZANIS]

45 COMMENTS

  1. A reduction in taxes is far much better than heft salary increases. We need to wory about comodity pricing after salary increaments.

  2. Good evening

    Not a bad idea, but implementation needs to be done properly. How about considering to process more of the copper locally, instead of exporting it raw every time? It would not only legitimate the high royalties but also significantly consolidate our industry.

  3. Thats a very good idea, government should come out in the open and state their position. But the problem is the current government is rubbish…. all they do is talk, make promises but do nothing about it. This is the worst government zambia has had in the history of time, they have no idea what they are doing in those offices apart from singing songs against corruption yet they are the corrupt ones. God save our nation!!!!!!!!!!!

  4. My hope as well is that the government should increase the tax income threshold from one million to one point five million Kwacha and also adjust on the the tax bands which are currently at 25%,30% and 35%.This will mean that those getting below K1.5m will not pay tax, which i think, will make a bit of sense looking at the food basket for a family of six in our country is quite high.Kindly help us in that area our listening president Mr.Micheal Chilufya Sata.

  5. I do not see this Government taking this election pledge forward. This together with the issue of dealing with rogue investors that do not take into account or indeed treat Zambians as fellow human beings were the two areas that gave me hope in a PF lead Government (not that I supported them nor that I would have even contemplated voting for them even if I was in Zambia) But that hope is gone is gone and what is left is the reality of what were my fears about Mr Sata as head of state.

  6. DEATH NOTICE

    Katongo Mutale aka Mushota has died.

    Mushota was gunned down Nov. 7. 2011 while she and her boyfriend Nick rode in a caravan of luxury cars headed to the airport in Puerto Rico.

    She was taken to the University Medical Center, where she died of respiratory failure and cardiac arrest….

  7. …A Cadillac with an unknown number of occupants pulled up to the sedan’s right side, rolled down one of the windows,

    and rapidly fired a volley of gunshots at Mushota; bullets hit her in the chest, pelvis, and her right hand and thigh.

    One of the rounds apparently ricocheted into her right lung.Nick was hit in the head by fragmentation,but is recovering in the hospital…

  8. …Mushota, perhaps the most prolific blogger of all time will be rememberd for her contradictory themes;unbridled aggression, compassion,

    playfulness and hope all continued to shape Mushota’s contributions on Lusaka Times.

    She was only 27.

    MHSRIP.

    SISTER ELIZA MWAPE([email protected])

  9. Chile has a better development than zed from the same copper.Perhaps of more importance than windfall tax is what Chile does with its mine taxes.How you spend or invest can sometimes matter more than how much you get.Examples abound of countries with similar wealth in the ground that hasn’t changed their fortunes much vs others that do better-Nigeria with oil vs UAE,Zed vs Chile or DRC with its cobalt & other minerals vs Morocco.

  10. It does not have to be called windfall tax but certainly reviewing the scale of taxes received form the mines as well as giving a relief to workers is inevitable for the PF Government.

  11. I really hate to be talked about dying, unlike zambia where people dont reach 30 I will live up to 90 because there is better weather , food air etc

    zambia there is aids illness life expectancy no more than 30

    Joke country really

    Thanks

    • iwe ka mushota what are you saying about zed you pushi coz even that side the same diseases are there and life expectancy in our country right now is well over 50yrs so yes someone might have made a mistake about you being killed but you are clearly BRAIN DEAD

  12. From Mushota´s sister

    Please be informed that the real Mushota is dead,the one on postings 14,15 and 16 is or are imposters.

  13. while they are at it, cant they also please legalise homosexuality so that i open the first homo night club and make my millions out of my investment in that country! my white wife says good evening and wants to see homo legalised! grow up zambians. homo= more money in your pockets when i open that high tech club.

  14. Mineral royalty can be increased to 6% because it was there before. To create jobs we burn export of concentrates in which other minerals like Gold, are smuggled. On what basis are civil servants asking for a salary increase when their working attitude is below par? Productivity is almost zero. Only nurses and teachers should receive salary increase. And of course our defence forces especially ba police

  15. I will reserve my comments, except to say I look forward to Friday budget. That is where the heart and Soul of this party will be revealed and I hope it will be a good one for Zambians to benefit.

  16. Whether Mushota is dead or not lets not occupy this space by debating Mushota is dead or not we all wish her well wherever she is and bloggers should know that wishing someone dead is a taboo in our society. Mushota is a good lady i wish she participated on the R4M program on muvi where one tasintha girl got 45million kwacha.I really want want to marry this Mushota girl to show how we can love her.

    • See what naimwe, you knew that they were lying to you before you voted and they are lying to you now, why not call a spade a spade and tell it like it is!!
      Secondly, with all their talk or more money in MY pocket they are busy drawing our attention to the previous government rather than focusing on what they promised in the first place(s) remember Sata’s first attempt for plot1 was in 2001

  17. Shops should also pay sales tax. Most shop owners do not issue receipts. Its high time we started demanding for receipts so that every sale can be accounted for and tax paid. Even tu ntembas should also pay tax!

  18. Increase the tax base: Capture everyone who earns an income i.e. shops, tu ntembas, car washes, welders, car mechanical workshops etc! Some of these guys make more money than what miserable civil servants get and yet they pay nothing!

  19. LT,please do not wish other people bad luck in their lives.Mushota,bad as she may look or sound to some us, should not be wished dead bane.Wamungulu natwishiba but all the same we need her around. Coming to the subject,Pf promised to bring Windfall Tax and this they should.This is the reason why they were voted into power so that they fulfil their promises.We also expect a reduction in personal Taxes and a raise on the exempt portion.Anything less than this will not be accepted and will lead to an impeachment.Those with Sata’s phone number should phone him and warn him that people expect nothing less than what was promised.We are not afraid to call for an early election and vote for a competent Leader of our choice.

  20. Its better to reduce tax than to increase Salaries for the people. The PF government needs to revalue the kwacha by dropping one Zero from our Currency. 
    I am not fun of Economist per say because they have failed to diagnosed our economic problem. It is from this background that Imagine a situation where you go UTH and say Lusaka Hospital, one doctor tells you its Malaria and another it is TB? It is the same with our Economist here in Zambia. Some are saying if do that & that this will happen and another one that. 
    Politicians need to be guided please. So is it the Tax reduction or Salary Increase or both or none of the above.  Sata should be careful, good Intuition is better sometimes  than professional advise.

  21. Nothing will change.  I am allergic to politicians who U-turn at breakfast, U-turn at lunch, U-turn at supper and U-turn in between all day long.  You wanted total chaos, now you have total chaos.  Zambia will soon revert to being a jungle.

  22. let us wait for friday and hear what the so called mr of ndalama is going to tell us.this dont kubeba govt is already turning a back on the poor people of zambia.

  23. Our track drivers want K10m or K12m. Can we be serious with what we are doing as a country? If the companys are making so much money that the union its drivers deserve such amounts then we need to re think what we are charging people to pay for fuel. maybe the price needs to come down because this industry is making way too much money.

  24. @MUSHOTA- Well, your views to say the least are mediocre. However, your death would add value to Lusakatimes articles because you degrade the meaning. I know you are not dead because the death is a little too dramatic! However, I wish you a quick demise and eventual departure from earth- RIP little brainless princess, you are dead to me anyhow!

  25. Leave this kaMushota alone. Lets just sieve what we can from her almost 100% MARUBBISH. I just like her nonsense mwe! Its quite entertaining for progressive dullards like me. Keep the flame burning mwaice! I end here!

  26. We told you that PF has no capability to deal with the issue of the windfall tax. PF has been intimidated by the mine investors.

  27. Yes Guys,
    It was the windfall tax on oil companies in the UK that made Dame Margaret Thatcher one of the most successful British prime minister ever. A mining company could budget for a copper price of $3.10/lb, say. So I think whatever copper is sold for above that budgeted price, the company should keep half and give the other half to the country.
    Allah’s Blessings

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