Copperbelt University School of Business associate Professor Biemba Maliti says government should derive maximum benefits for the people from the mining sector.
Professor Maliti says this is because mining is the mainstay of the Zambian economy.
He has since urged government not to be blackmailed by threats over possible job cuts once the proposed hike in mineral royalty tax is effected.
Professor Maliti was speaking in an interview with ZNBC news in Kitwe.
And mines minister Richard Musukwa has maintained that government will not fall prey to the arm twisting tactics by the mine owners following the proposed 2019 taxation regime for the extractive industry.
Mr. Musukwa says the chamber of mines has over the years objected any maneuvers by government to increase taxes with a cohesive and well calculated resistance plan portraying government as irresponsible and uncaring.
He told ZNBC news in a telephone interview that it is immoral and irregular for the chamber of Mines to dictate to government how they want to be taxed.
Government plans to increase mining royalties by 1.5 percentage points across the board but the Chamber of mines wants zero point five.
They also want government to increase cobalt royalty by zero-point five percentage points, rather than the government planned 8 percent.
The Chamber has also indicated that members will continue to review their operations and scaling back substantially while reducing capital expenditure by over a half billion dollars over the next three years.
I support the PF government on this. But they need to implement and rollout the tax system responsibly. And some of their senior members should not be bribed by the mines so that they can overturn the tax increment as we have seen in the past.
Of course they will resist tooth and nail as these mining companies’ main concern is maximising profits and their loyalty lies with their shareholders, not the average Zambian.
Having said that whatever money is obtained from this tax should actually go to benefit the ordinary Zambians and not end up in the already fat accounts of these Klkawalala masholi thieves!
Please do the right thing by people PF.
Unfortunately, much as PF will talk, they will cave. Because, as always, enriching a few corrupt politicians will allow these cooperations to succeed in their endeavor.
If the current GRZ curves on this, they should start preparing for exit in 2021. We will advocate for a government that puts the smart people of the Zambian Enterprise first.
Let’s roll …
Reposses Kansanshi, Kalumbila and Lumwana. We have more than enough trained Zambians to run them. Not these fake exparts who with no qualifications. That hour has come to get back what is ours.
Regards.
@B R Mumba, Sr good point, these are the issues we are all supposed to be advocating for. Look at the damage to the land in the picture, is it propositional to the gains or wealthy it? What are we going to use that land for after mining?
We should protest until we get what we want.
SOLIDARITY ON THE LATEST TAX REQUIREMENTS FOR THE MINE!!
LPM and Magande made happen, so can ECL and his Margaret. Tax is important for the nation. Everyone agrees. Thus peddle down.
Let ’em go with HAKAINDE MENTAL. We have no room for MENTALS.
Ohh boy..it seems this chamber of mines does not represent government interests.
The Chamber of mines head quarters are in London
Minister Musukwa should tell Finance Minister Maggie not to entertain any blackmail from the Chamber of Mines.The Chamber of Mines together with ZIPAR have been quiet irresponsible when its comes to taxation of mineral resourecs which currently is Zambia’s mainstay.
A close look at the role of the Zambia Chamber of Mines, as an organisation representing Mining and allied companies operating in Zambia, have appointed a new President at its Council meeting held this December.
The new President, Mr Goodwell Mateyo takes over from Mr Nathan Chishimba who has retired as the Chamber policy head after two consecutive terms.
Mr Chishimba provided oversight on the policy and lobbying activities of the mining sector during a period of Energy deficit, Value Added Tax Refund crises and several changes to the fiscal regime in the sector. He was involved in cementing relations with the Zambian government and signed up to the Extractive Industry Transparency Initiative, an initiative which encourages government, mining companies and civil society organisations to…
Continued
… to show transparency and accountability in the extraction of Zambia’s natural resources.
The incoming Chamber President is a highly experienced Executive who has demonstrated ability in regulatory engagements in the mining and financial sectors. A lawyer by profession, Mr Mateyo has worked as a legal advisor to the mining industry for years.
Mr Mateyo will be deputised by Mr Nicolas Bowen a seasoned industry veteran who will serve as Vice President.
Mr Mateyo takes over the policy lobby group at a time when the mining industry is facing an imminent change in its fiscal regime as outlined in the 2019 National Budget announced by the Minister of Finance.
Mr Mateyo took this opportunity to disclose that members of the Chamber are thus reviewing their operations and…
Continued
… and having to consider scaling back substantially while reducing capital expenditure by over a half a billion dollars over the next three years. Consequently, reductions of over seven thousand direct jobs and more than double this number of indirect jobs would result.
“While feedback on our representations to the Ministry of Finance is awaited, the membership remains hopeful of averting such an outcome and are strongly committed to robust engagement above and beyond the process outlined by the Minister in which the reconstitution of the Tax Policy Review Committee was announced.” Mr Mateyo said.
Government should not listen to the mines’ exploitative demands.
We are surely set for a serious showdown between GRZ and the Capitalists! We just hope no one gets bruised. Capitalists always seem to be way ahead of GRZ!
The mistakes were made at privatization! How did we allow more than 50% foreign ownership of mines? We are missing out on dividends and all we can rely on are rentals (Royalties)? If mines are 100% foreign owned, we can’t expect to derive maximum benefit! We must go the Magufuli way and increase GRZ stake in all mines and GRZ should have 51% Controlling share!
Our people should also support government when and if the mines carry out their threats. I know some unpatriotic but politically ambitious individuals will use such to incite miners against government. Freedom and independence are not cheap especially economic independence. How long are we going to be toyed around with by the mine owners?
chamber of mines are sell outs and don`t hold govts interests and interests of the Zambian people, they are the ones advocating for these mines and trying to arm twist govt, if govt falls for their tactics then the Zambian people are the losers once again
Te Government should e commended for increasing Mining Taxes. And all patriotic Zambians shouldould join hands as development of this Country can only be attained by local resources mobilisation. See the Arab Emirates for example. These tactics were employed in Tanzania and
Government never gave in. Today it’s a different story and the threats have died a natural death.
I hope every Zambian is on the same page with GRZ
Government needs support from citizens. This change of course would come with consequences if implemented. But citizens should rally behind the government.
With the little Economics I have learned, It is a fact that whenever there is a disturbance in the economy, the economy goes out of equilibrium. However it comes back to equilibrium again but at a different level. Of course Miners will cut jobs but this is for a wile and soon they will start re-employing when equilibrium in the economy is reached. Thus, GRZ must to relent on effecting the new taxes… let GRZ go ahead for it is for the betterment of our economy.
Honorable Finance Minister Mrs Mwanakatwe , please revoke subsidies on electricity and fuel to the Mines, in addition to sticking to your proposed Taxes on them. They are huge profit making entities, why on earth should a poor nation still subsidize a mega multinational firm? There are enough people lining up to take over the mines if they want to leave, Copper is a depreciating resource, let’s maximize income from it while we can like Tanzania has done. let’s not be held to ransom by their threats of worker retrenchment. We need the money to pay down debts and repair our international reputation financially.
This will be a true test of leadership for EL and Mrs Mwanakatwe. Any backtracking will be a clear indication of money having changed hands at a high level or quid pro quo. Suspiciously Stumbeko Musokotwane and Chikwanda backtracked at a similar time. Wealth to purchase huge tracks of Land and another large building works in Roma and an in-law employed at mines in a high position became evident soon after. Posterity will judge harshly. And God never forgets.
Huge tracts of land in Kafue
I dont like PF but I agree with the PF on this one. We need maximum benefits from our minerals so that they can help feed our people.
There is no need for the mines to twist the arm of government. Just give the all the government officials from the president , ministers, ps etc their cut and things will be ok.