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Alba Iulia
Thursday, August 6, 2020

KCM disputes $18 million Zambia tax bill

Headlines KCM disputes $18 million Zambia tax bill

Konkola Copper Mine(KCM)
Konkola Copper Mine(KCM)

Vedanta Resources’ Zambia unit, Konkola Copper Mines (KCM), is disputing a bill of almost $18 million slapped on it by tax authorities after an audit, an industry source familiar with the matter, told Reuters on Wednesday.

Zambia’s revenue authority concluded audits of mining companies that prompted it to hit Canadian miner First Quantum Minerals with a tax bill of $8 billion.

A KCM company spokesman declined to comment on the matter, and officials from the Treasury and the revenue authority could not confirm the dispute and the size of the tax bill.

Several African governments, including Zambia, Tanzania and Democratic Republic of Congo, are trying to extract more revenue from their resources, unnerving investors as they hike taxes or withhold VAT refunds.

The source said some other mining companies were also disputing the tax bills but was not sure whether they would be part of a planned Wednesday meeting with the finance minister.

First Quantum said in March that Zambia’s tax agency had demanded the taxes, saying they were on import duties, penalties and interest on consumables and spare parts.

The ZRA said on Monday it had audited all the major mining companies in Zambia and informed them of what they owed.

33 COMMENTS

    • This is why I don’t like people born or bred from Copperbelt.

      They disgust me. I hate them all

      Because of this people

      I wouldn’t sleep with one from there

      Thanks

      BB2014,2016

    • Zambia aggressively trying to make-up for the deficit in revenue accessibility. These are hard times. Borrowing is fast becoming much less an option for the Lungu regime. Meanwhile time is ticking, the finishing line is in the offing.

    • Really laughable….you honestly think greedy KCM can pay $18 million, they failed to keep up with installments ordered by London court ….Anil will simply go to his corrupt friend in State House and donate £200K to PF campaigns and they whole thing will disappear.

    • Trump does not pay his taxes.
      Why should KCM?
      After all Mwanawasa sold them the mines for a song and we ate busy quarreling about petty political issues and tribalism.
      OUR politicians are pathetic.
      Especially so-called opposition

    • Please don’t let these people get away with not paying their fair share of taxes. Africa in general has been losing a lot of revenue due to these foreign companies refusing to pay taxes. Why do they think they can be extracting our minerals for free? They know pretty well that they can never get away with this in any developed country. And yet they want to get away with it in Africa. ZRA needs to stand their ground and act like they mean business. If they refuse to pay up, threaten to seize their assets, and then throw them out of the country. Zambia is rich in mineral resources, and we want to see that richness translate into national wealth that will help ordinary Zambians to have better lives. These companies damage our environment by dumping toxic waste in our rivers, and land,…

    • (Continued)… and pollute the atmosphere with poisonous gases, that threaten the health of our people. Whatever you do, ZRA, make them pay up. Don’t let them get away with it!
      Because if you don’t hold them accountable, they’ll continue to extract minerals for free, laughing all the way to the bank, while Zambia continues to hold an empty bag. A few years from now, the minerals will run out and these people will fold their tents, dismantle their equipment and ship out of the country, leaving behind gaping empty holes in the ground with nothing to show for it as a country. MAKE THEM PAY UP!

    • Yes I agree 18 million dollars is disputable. It should be 18 billion the thieving exploiters!

  1. We need competent tax people. Not people who just dream figures. You stand outside the gates and audit with castle lager in your hands.

  2. Just shows how crafty these mining companies are. Glencore the owners had played tricks on how to avoid paying what is due to government, it took an overseas NGO to expose the scum. And yet some Zambians want to side with them for fear that this may cost them jobs. How pathetic.

    • ZRA shall seek the help of British and UAE governments to audit their overseas operations. These two offices are used to engage in transfer pricing.
      Mrs. Mwanakatwe shall direct ZRA to engage the services of competent accountants in Transfer Pricing Cell to audit and expose Banks, Insurance Companies, Importers and Exporters to nip the evil in the bud.

    • 3.1 not as ugly as your face. Why bother about a name instead of the issue at hand. Shallow!

  3. ALL THESE SO CALLED INFESTORS ARE THIEVES AND SHOULD PAY OR GO BACK TO THEIR COLD COUNTRIES

  4. WE NEED TO OPEN OUR EYES..AND BE AS CLEVER AS TONGUE IN THE MOUTH….THEE CHARACTERS ARE JUST THIEVES..

    • Future Nchanga MP, have uou not noticed that no one replies to Mushota and he/she is becoming irrelevant. By replying to her you are encouraging her non-objectivity, stupidity & wasting time and space. Chao.

  5. I am so happy about this KCM incident. Let them pay up or leave. These indian chaps have failed to develop Chingola and Chililabombwe. Not even 0.5% of their money go into CSR. Chingola is now a war torn city from the cleanest town.
    And to make matters worse, they have outsourced their labour to the Chinese. This is all because of poor leadership of PF. PF strong man has brought up suffering in Chingola. 2021 PF kuya in Chingola.
    Abash KCM Abash PF!! VIVA CHINGOLA

    • Ba Future Nchanga MP, you are really uninformed. Mwanawasa and not PF brought the Indians to Chingola and Chililabombwe. Yes, the Indians need to go but it has to be done properly so that it doesn’t dent Investor confidence. Unfortunately, our Zambian businessmen only invest in trading and not mining or manufacturing so we are stuck with these fake investors until we wake up.

    • You are stuck with the Anil and his Indian workforce …its not like a shop where you can just stop going in; these guys sell products abroad which is very much in-demand.
      Zambians know your rights and learn from infestors if taxman gives you a bill you can dispute it

    • Habeenzu tell the chap that Chingola started it’s decline when LPM handed the mine to the Indians. In fact GRZ has taken over No1 Clinic which was neglected by the Indian company and turned it into a modern mini hospital. Truth should not be twisted.

  6. Let us wait and see PF will unleash Lewis Mosho and company with the urgency they did on the Post newspaper. It is the same money we want. Who cares if they close down. Copper will remain underground for others to mine. Let Mosho move in and count all the heavy equipment ready for sale!

  7. Now that the govt is broke it is unleashing zra on the mines and slapping them with assessments so that they delay in paying the millions of dollars of vat refunds that these same mining companies are owed. All these companies will object and if and when it is proved that they don’t owe any taxes what happens then? Let zra just give them their vat refunds and if they are owing deduct from the same.

  8. We don’t care in Zambia this is how we live. Just surrounded by bunch of crucks but still living, moreover our leaders lukungulweka

  9. This is what Zambia’s Ambassador to some European country was preaching about Zambia .He said to them that when you invest in Zambia you will not pay tax for five years .Now they have made their own pudding and eaten it . You cannot say one thing and when people are looking the other way utter or do the opposite .There is something seriously wrong with our Government and our system.

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