Wednesday, May 22, 2024

Let’s dialogue over windfall tax-Saasa

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AN ECONOMIST has called for increased debate among stakeholders on the re-introduction of the controversial windfall to ensure a win-win situation is achieved.

Oliver Saasa said while windfall tax is necessary for the country, Government, mining companies and other stakeholders need to engage and come up with an appropriate level.

However, Government has stated that it has no intentions of re-introducing the tax.

Professor Saasa said there is need to ensure that if reintroduced, windfall tax should be within the means of mining companies and at the same time be beneficial to the country.

“ The threshold should not be so high as to choke and frustrate the mining sector. Therefore there is need to look at the cost structure of the mines and look at the point at which the mines can be taxed based on the average cost structure of the mining companies,” he said.

He said this in an interview in Lusaka.

Prof Saasa however said determining the cost structures of the mines and profits made by the mines remains a challenge because Government has no capacity to do so currently.

He said Government should intensify its capacity to monitor and regulate the mining sector so ensure transparency in the operations of the companies.

“It is difficult to know if the mines are being taxed correctly and if they are declaring the correct profits so instead of throwing stones at the [mines] and continue battering them when you do not know how much they are making, Government regulate what happens in the sector,” he said.

Prof Saasa said the failure by Government to closely monitor the mining companies and other corporate organisations has resulted in some companies under-declaring their profits resulting in revenue loss for the country.

He said the country can only realise its economic growth potential if loopholes in the taxation system are sealed.

9 COMMENTS

  1. You failed at ZR what can you tell us, shut up your mouth ba guy, you sold Clever Chilwa cause you wanted to please Fred Post and his crooks.

  2. Nostrahamus get civilized and stop insulting. By the way anyone can potentially insult. The stone age kind of commenting of serious matters like windfall tax is long gone, tell the readers how best you think this issue can be handled than mentioning the disgusting “puffing and anus.”

  3. Saasa, what you are saying is like getting Turkeys and Chickens to vote for Christmas knowing very well that they would be on the menu!!

    The problem is that the mines are so unrealistic that they dont want to pay anything at all! As an Economist, you know that the mines are contributing less than 1% towards our national revenue. This is plainly daylight theft of our resources! There is nothing to dialog about – just grab the mines from them! Even closure of the mines is better than giving away our valuable resource for free! In fact future generations can benefit from unmined deposits!

    • Grabbing is not a solution. Zamtel and ZR were grabbed. Are they declaring any profits now? Instead people are just enriched themselves out of the same grabbed business entities. Very soon they be shells and they be privatised.

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