Mining Companies paid tax amounting to US$87 million to the Zambian government in 2011 according to the latest 2011 Extractive Industry Transparency Initiative EITI report.
The mining companies that paid the windfall tax are NFC Africa mining, Chibuluma mines, Chambeshi metals, Kansanshi mine, Mopani mine and Konkola Copper Mines.
Windfall tax was abolished by the Rupiah Banda led MMD government.
And Caritas Zambia has implored the government to have a listening ear and consider reintroducing windfall tax.
Caritas Zambia Executive Director Samuel Mulafulafu in a statement issued to QFM News today says the $87 million paid as windfall tax is what Government could have been receiving every year from the mining companies which would have made a huge difference to infrastructure development and employment of more civil servants like nurses and doctors.
Mr. Mulafulafu says government’s position on windfall tax has continued to disadvantage many poor Zambians who require quality social service delivery.
He has also implored government to seriously ensure that all mining companies pay their dividends so that the nation can benefit from the inordinate profits generated, considering that only two mining companies Chibuluma and Kasanshi mines paid dividends of the mining companies that were reconciled.
He further wonders how the government reported to have received K7.72 billion from mining companies, more than what the mining companies paid which is K7.67 billion.
Mr. Mulafulafu however says Caritas Zambia is encouraged to note the 100 percent revenues increase from K3.02 billion in the 2010 EITI reported figures to now K7.5 billion according to the latest 2011 EITI report.
Mr. Mulafulafu has since implore the government through the Auditor General’s office to play an active role in enhancing transparency on tax revenue recordings and tax expenditures as well as monitoring and applying pressure for the implementation of audit and EITI recommendations.
Mulafulafu and co. vehemently decampaigned RB. He was all over in Post newspaper being quoted left, right and centre. And where is his colleague, Lee Habasonda? The guy has become quiet, is it a sign that he is now “eating” like Willie Nsanda?
# chosen one, please focus on issues, not personalities. At this rate you will are merely a prime candidate to be chosen for rank stupid!ty.
Back to the issue – this windfall tax is a mere fraction of the undeclared taxes that these mining companies reap from us. There is no cause for happiness here given that these are just scraps that fell off the banqueting table.
those chaps should not pretend..we need the windfall tax back!!
THAT”S IT IMWE BA POMPWE??
RB uis now a rich man as he was given a hefty sum for terminating the windfall taxes. We need to protest and demand for windfall tax to be reintroduced as our poor voters have suffered in enough?
Kusiyanasiyana kwanzelu zama Finance Ministers we have in Zambia same goes for the caliber of economists! True the gains from windfall tax could target education, health and agriculture.
Windfall tax, under which tax law? What a load of crap!
Under the Mwanawasa government windfall tax was law. Its a matter of revisiting the law which RB removed. Just like the way the government has recently changed government borrowing from K200 million to K13 Billion. They amended the law or reinstate it.
Wow – trying to fathom your approach – who makes the “law”? So why not legislate – i.e. Make the law?
There’s currently no legislation on windfall tax. Chikwanda refused to introduce it and told all and industry that only craze people were advocating for it. I repeat: there’s No windfall tax law! This article is complete nonsense. The $87million is corporate tax……punkt!
Really? And so what
All of them paying a pantry $80m when they are making billions all together.
The real problem is that these mining firms deposit their earnings in Swiss, Cayman Islands etc. banks instead of Zambian banks. In short our money is being used to provide for free education & health of Swiss, Caymanese etc. children. For example, your mother makes fritters and after selling the fritters, your dad takes the money after sales & stashes it at a girlfriends home, leaving only enough for your mum to buy flour for the next batch. Tell me whose children will go to school in magamba (rags)?
It was windfall tax on oil that made Margaret Thatcher the most successful British prime minister. Mining companies prepare their annual budget on an anticipated selling price of the metal. When the price is above that, the Govt. ought to call them and tell them that half of the price above their budget is for them…AND HALF FOR THE GOVERNMENT. After all…It is Zambia’s God-given resources!!!