Opposition Leaders at the conference
Opposition Leaders at the conference

Opposition political parties have demanded that government re-introduces windfall tax in view of revelations by Vedanta Chairman Anil Agarwal that Konkola Copper Mines (KCM) makes a minimum profit of $500 million profit per year.

A YouTube video taken in March 2014 Mr. Agarwal mockingly tells of how he bought Konkola Copper Mines for only US$25 million and how the mine has continuously been making a minimum of $500 million profit per year plus $1 billion.

United Party for National Development (UPND) President Hakainde Hichilema has told QFM News in an interview that if government had reintroduced windfall tax the money could have been channeled to infrastructure development in the country.

Mr. Hichilema says the PF government should not wait for the opposition and other relevant stakeholders to remind them of the need to re-introduce windfall tax in view of such revelations.

The UPND leader adds that if the PF government is a descent government, it would not to wait for the revelation by the Vedanta Chairman of huge profits KCM is making but would have introduced the windfall tax when it took over office in 2011 as they promised.

And National Movement for Progress (NMP) President, Ng’andu Magande, says when he reminded the PF government of the need to reintroduce the windfall tax he was called him a lunatic.

Mr. Magande who introduced windfall tax during the time he served as Finance Minister before it was scrapped off by his predecessor Situmbeko Musokotwane says the PF have now seen the result of failing to reintroduce the tax.

Mr. Magande says it is common knowledge that many developing countries such as Zambia are losing billions of dollars in the extractive industry owing to poor policies.

Speaking in a separate interview, Alliance for Better Zambia (ABZ) President Father Frank Bwalya says the information coming from the Vedanta boss should not surprise Zambians because it was expected when the PF government refused to re-introduce the windfall tax.

Father Bwalya says remarks by the Vedanta Chairman confirm what various stakeholders have always said about the privatization of some of the country’s assets.

And the Zambia Revenue Authority is checking to establish whether claims by Vendanta Chairman that Konkola Copper Mines makes a minimum of $500 million in profit per year is at variance with profits declared.

Reliable sources at ZRA have told QFM News that if need be, tax adjustments with possible resultant penalties and interest will be made

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10 COMMENTS

  1. Please ba Pastor Mumbwe tell us who put us in this mess.
    HH please also tell us who were the archtects of privitasation…….you know them well.

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    • This situation demands more than just windfall tax.

      we must review ALL the deals with ALL the mines operating in our country

      SI 33 and 55 were some of the measures introduced to protect our resources but the international cartels led by IMF and world bank played us forcing govt to withdraw these important instruments

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  2. This is Treason. There is clearly a crime of betraying one’s country this this despicable economic sabotage. Mwanawasa, Kaunda Lemba Lemba, Magade and Jordan Soko among others owed Zambia a fiduciary duty in the exercise of sale of KCM. They were supposed to exercise diligence, prudence and reasonable care which clearly are not evident in this case. If this was their own personal asset they would not have sold it in this way. This is not privatization, this is just pure criminality and the two should not be mixed up. So Mugade should not talk about windfall tax now, he should first explain how he together with Mwanawasa, Kaunda Lemba Lemba and others committed this treasonable case.

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  3. MMD under RB and PF under Sata and Chikwanda are accomplish to this crime for covering it up and participating in illegal gotten proceeds from Agarwal and others through their unreasonable resistance to introduce windfall tax.
    To be clear the amount in question is US$13.5 billion, made up of US$ 500 million per year and other 1 billion per year (presumably this is in form of profits from transfer pricing) over 9 years which is all taxable now that we know about it

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  4. And this is why the opposition is in disarray. ..you are honestly telling us you need an infestor like this Indian guy to tell you that he is robbing from you?

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  5. @ MMD Thug, are we supposed to continue in a mistake because of other peoples mistakes? Don’t u think we have to correct those mistakes?

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  6. MMD has no comment I guess. From KCM web site:

    “By March 2000, the privatization programme of the largest mining assets was completed. Anglo American reacquired a 51% stake in Konkola Copper Mines which comprised mining operations in Chingola and Konkola, and smelting / refining operations at Nkana. However, in September, 2002 Anglo American withdrew as shareholders of KCM, leaving a restructured company whose main shareholders were again government entities, ZCCM-IH and ZCI. In November 2004, Vedanta Resources became the major shareholder in KCM with a 51% share in the company. In 2008, Vedanta Resources increased its holding in the company to 79.4%.”

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