NCHANGA Mine rescure Team B Captain Jonathan Kolala inspects air underground during the Zambia Mine Rescure Association competetion at Namundwe MineTHE Chamber of Mines of Zambia has recommended that the Government should appoint an independent international auditor to carry out compliance audits to address concerns expressed by stakeholders and members of the public on whether the mining companies are honest enough in their voluntary declarations.

Chamber general manager Frederick Bantubonse said in a statement obtained in Kitwe yesterday that it was imperative that assertions by some parties were addressed and subsequently appreciated.

Mr Bantubonse noted that in January 2008 late president Levy Mwanawasa told the nation that the Government had discovered that effective tax rate in Zambia was the lowest in the world at 31%.

The Government then wanted the effective tax rate to be increased to 47%.

He explained that after the budget was presented to Parliament in 2008, which proposed to introduce, among others, windfall tax, the mining industry contracted tax consultants to advise on what the effective tax rate would be once the new tax measures were introduced.

The consultants informed the industry that the effective tax rate would be well over 80% far above the 47% that was targeted by the Government.

“The perception by many people in Zambia seems to be that the abolition of windfall tax means that mining companies have been exempted from paying taxes,” Mr Bantubonse said.

He said it was not the case as mining companies pay other taxes including company tax, minerals royalty tax, Value Added Tax, and others.

The company tax at 30% of profit, in particular, would increase greatly once carry over losses and capital allowances are liquidated and more mining companies become tax liable.

“There is still, therefore, a form of windfall tax in operation called variable profit tax which is based on profit and is triggered when a mining company makes operating profit of over eight per cent,” Mr Bantubonse explained.

He said in view of the misunderstanding, the chamber was recommending to the Government to engage an independent international auditor to carry out compliance audits.

Efforts to get mines minister Wilbur Simuusa and his deputy Richard Musukwa failed as their mobile phones were not reachable by press time.

[Times of Zambia]

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32 COMMENTS

  1. Mr Bantubonse, I concur!

    Too may Zambians do not know the real picture. Just look at how quickly the PF boys changed their tune on windfall tax when they got into power and had a reality check!

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  2. We already have the Big 4 in Zambia – PwC, Deloitte, E&Y and KPMG. Aren’t these independent enough?

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  3. We should have in place systems to for verifying output against sales. Presently the mining companies just “cook” the numbers and make false declarations to hoodwink the state. The mines are robbing this state blind. Their proposal to own 35% of mines made sense because they could then monitor “economic sabotage” when they have representation across the board. This generation should not be greedy to pawn our god given resources to the so called investors for a pittance. If we do not have effect legislation for maximum benefit to the nation, lets leave the resources in the ground for posterity to exploit- when they have favorable in place. We should not settle for crumbs from the table over our resources.

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  4. Zambia do not, are not capable of having the big 4. I think there is KPMG which is more of an isolated remote office in zambia

    Restain from vexing people. Alittle meticulous and reseach helps before posting the jiberish incoherent messages like that.

    I would strip naked here in glasgow before Zambia a third world country had the big 4. Impossible

    Thanks

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    • Theres a list of the the big 4 addresses in Zambia Mushota, so start stripping and post the pictures online. For a person who claims to be very educated you seem to be very dull. Do your research and dont behave like our President who talks first then investigates the facts later

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    • Mushota losing is some times an indication of an underlying mistake. Admitting you make mistakes automatically proves you ve lost before. So saying you ve never been a loser is a lie by itself. You talk of how Nick kindly reminds you that everyone makes mistakes!! Well how come you do not display the same kind of kindness when blogging about your fellow country men and country of origin. Your appetite to be admired or envied clouds your judgement and its displayed in the quality of your blogs. Debate issues in a level headed fashion and perhaps people will believe you are actually educated

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    • Ba Mushota… stop embarrassing your self. if you are ignorant about certain issues its better just keep quiet. PwC, Deloitte, E&Y and KPMG (yes in what you call an isolated corner-your homeland Zambia) and Grant Thornton. Guess you haven’t heard of all these. Start stripping and be arrested for indecent exposure in your cold and remote far off Scotland. that is what it is from Zambia. far and remote. may you freeze from the Scottish cold as you strip.

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  5. Deloitte Zambia
    1 Nairobi Place
    Kafue House
    Cairo Road
    Lusaka
    Zambia
    Tel: 260 (1) 228 667
    Fax: 260 (1) 226 915
    KPMG
    Our offices

    First floor, Elunda 2
    Addis Ababa Roundabout
    Rhodes Park
    Lusaka

    First floor,
    Mega Shopping Complex
    Kitwe

    P O Box 31282
    Lusaka
    Zambia

    Tel: 096 114 1307
    [email protected]

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  6. ” The consultants informed the industry that the effective tax rate would be well over 80% far above the 47% that was targeted by the Government. ”

    Could the Lusaka Times give a breakdown of that? Because I am very curious as to how they arrived at that ridiculously high number. Did they include PAYE in that, which is not a mining industry tax (your business’s tax liability does not confer to your employees).

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  7. Otherwise, you are arguing that taxes paid by your employees should in effect be taxdeductable from your business.

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  8. Theres a list of the the big 4 addresses in Zambia Mushota, so start stripping and post the pictures online. For a person who claims to be very educated you seem to be very dull. Do your research and dont behave like our President who talks first then investigates the facts later

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  9. Ooops pardon my ignorance, but wait have these officces just opened then?

    Are you pulling leg? How come I do not know of these, considering I have CIMA, ACCA MBA and soon starting PHD?

    I still repudiate that these offices above exist.

    Let me ring to find out. On the website (Perharps its the Ipad 2 ) but I cant seem to see these offices at all on the big 4’s websites

    I hate being wrong If I am please accept my out of character foresight

    Thanks

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  10. #8 Winnipeg spot on. This ignorance has exposed Mushota that she (thought it’s a he) is not an accountant. All that CIMA and ACCA he brags about are hallucinations.

    Used to think Sata and Mushota have something in common. Dont think so any more. Sata has a brain.

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  11. #9 Mushota. Simply, this just shows you do not have the CIMA, ACCA and MBA.

    Have a good night. Dark already these parts of the world.

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  12. Ice road I have a quick check on the graduates of 2009 will show my name and 2008 on ACCA as well

    I post with complete candor and have never lied on these blogs. liars are losers and I have never been a loser, I make mistakes thought and as Nick reminds me at time, no one is perfect honey

    Also find a better name, I dont mean that with malice. Merry Christmas and Good Night

    Thanks

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    • I think its a nice name. Watch Ice Road Truckers on Sky History Channel. You’ll appreciate the toughness. A good break from the world of financials.

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  13. My name is Mushota Chimwembe. I live in Glasgow and was born 1983 and I am ofcourse 27 years old, not long before I reach 28 I am Zambian and I am engaged for 2 years now and I am avid reader on LusakaTimes
    I wish you all well :(
    I would like to once again wish everyone a great festive period and enjoy Christmas. Love you all, Please do not drink and drive, and stop smoking if you do, Its bad for your teeth and health, and do not drink more than 4 beers a week, Its bad for your health

    Thanks

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  14. Losing is some times a function of an underlying mistake. Admitting you make mistakes automatically proves you ve lost before. So saying you ve never been a loser is a lie by itself. You talk of how Nick kindly reminds you that everyone makes mistakes!! Well how come you do not display the same kind of kindness when blogging about your fellow country men and country of origin. Your appetite to be admired or envied clouds your judgement and its displayed in the quality of your blogs. Debate issues in a level headed fashion and perhaps people will believe you are actually educated

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  15. Before Frederick here opens his mouth lets find out where his loyalties lie; 
    He is a General Manger of The Chamber of Mines of Zambia which is registered as an association for mining employers, be they large mining companies or single employers.
    He is looking out for No.1 his members hence will not articulately weigh the pros and cons of Windfall Tax and Royalties Tax.  
    How does he explain a large commodities conglomerate like Glencore International plc which not only produces but  sources, processes, refines, transports, stores, finances and supply commodities needed by industries around the world. How are you going to tax a company of this nature 30% profit when it can easily sale to its subsidiary company at an undervalued price store it then sale again at a premium.

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  16. Times Of Zambia’s “pen pushing” journalists and Zambian press in general need to be more inquisitive and have the curiosity of a 5 year old child so as guys like Frederick here should not be let off so easily without explaining themselves articulately. Most of Zambian press is just about just merely filling-in the space in the paper no investigative work involved very sad state of affairs. Laterally depriving the people of the much needed information. 
    So what’s the minister of mines going to say when he answers he phone? 
    Utterly DISGUSTED!!!

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  17. ba bantubonse naimwe, give us a break. we know what you went through when you were out of employment before this. are you saying magande made a mistake? are you saying chikwanda has made a mistake? may i refer to you as a fool sir, cos you are acting like one. whose interest are you suppose to serve? those of the infestors or your fellow zambians you fool.

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  18. Mushota if there is a qualification that u can get even from the streets here in Zambia is an MBA from uk.Merry xmas…hahaha

    thanks

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  19. Ba Mushota… stop embarrassing your self. if you are ignorant about certain issues its better just keep quiet. PwC, Deloitte, E&Y and KPMG (yes in what you call an isolated corner-your homeland Zambia) and Grant Thornton. Guess you haven’t heard of all these. Start stripping and be arrested for indecent exposure in your cold and remote far off Scotland. that is what it is from Zambia. far and remote. may you freeze from the Scottish cold as you strip.

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  20. Mushota is a just dish washer and a wanner be! Truth be told i bit she has an MBA, ACCA, CIMA in stripping. Zambians are the most respected people in the world. There over 20 International partnerships with Auditing firms across the global operating Zambia. Those papers you are boosting of a no longer an issue here in Zambia because the competition is tough .
    Check you Scotland officers and you will find a Zambia working at your so called Big Four who has been recent been transferred from the Zambia office. 

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  21. BA Mushota
    I’m Sure you know that in developed countries Qualifications do not count for much. Here in OZ someone without a qualification but has more than 1 year experience will be offered a job before a doctorate holder without experience is even considered. Mushota even though you are educated you unfortunately still think like an ignorant African. I suppose you can take monkey out of the bush but you…., Its what you, who you know that whats important not a stupid piece of paper. Uni is a waste of money if you ask me. you can learn more on Google than any other university can teach you.

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  22. #13 Mushita

    I think its a nice name. Watch Ice Road Truckers on Sky History Channel. You’ll appreciate the toughness – especially to those with engineering back ground to their ACCAs and MBAs of this world.

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  23. Number 2 thats a good observation. The Big four in ZAMBIA are not independent enough. There is too much conflict of interest. Some of the Partners of those firms were part of team that sold ZCCM, they were paid there fees on there opinions on the operations and sales of those mines. And where are the mines now? In that hands on China. Foreign Auditors? Maybe and not sure about that one either but because there is not enough options, I think that may be the way to go. As long as they are not part of the big four. There are so many auditing firms in the worls that would do a great job just as the big four.

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