A patriotic resident in Chinsali Town in Muchinga Province Town John Siwale has advised government to remain resilient as it implements the new mineral tax regime effective next year.
The new mineral royalty rate will rise by 1.5 percent points across the board, Finance Minister Margarate Mwanakatwe told lawmakers in Lusaka in her maiden budget speech in October that the proposed new mineral taxes takes effect in the first quarter of 2019.
The current tax rates range from 4 percent to 6 percent depending on the Copper price.
Speaking during a live radio programme on Muchinga FM dubbed “Breakfast show ” in Chinsali today, John Siwale said the new mineral tax regime that comes into effect in the first quarter of next year, have been done in good faith.
Mr. Siwale said during the radio show anchored by Panji Msoni and monitored by the Zambia News and Information Services (ZANIS ) that government should not be discouraged over its planned new mineral tax since mining companies have been making huge profits at the expense poor Zambians.
“ Changes in the mineral taxes should not make mining companies to start threatening the government with unjustified job cuts, “ he said.
He added that government should not entertain threats of job cuts at the expense of the much needed revenue.
Government needs revenue to develop the country and provide various services for its citizens in health and education, among other sectors, he reasoned.
In support of Mr. Siwale’s advise to government, Josephat Chitimbwa said arm twisting in the wake of new mineral tax regime should not be entertained.
Mr. Chitimbwa who is a businessman in Nakonde Town said during the same radio programme that mine companies complaining about the new mineral taxes are not being honest as they have made huge profits from the time they commenced their businesses in Zambia.
“ Although government has indicated that it is open to dialogue and submission on the matter, arm twisting through threats of job cuts should not be entertained, “ he said.
Mr. Chitimbwa said government needs the revenue for various services and companies not willing to pay new mineral taxes should hand over their companies.
He said Government should reposes or engage new investors ready to pay the new mineral taxes adding that he was wondering why the same mining companies operating in Zambia comply with sales tax laws in other countries while they should fail to comply with the same law in Zambia.
These policies being implemented have an intended consequences. They should have modelled and made wide consultations because this is a big pivot in policy.
Are they doing this from an informed and knowledgeable stand point or ni Chipantepante fye iyi? This Government of Kabovas and former money changers.
Emeralds, Rubies Score Big Profits For Foreign Firms As African Countries Go Broke
By Lisa Vives, Global Information Network
NEW YORK (IDN) – Foreign mining companies extract more than a quarter of the world’s production of rare emeralds in Zambia yet declare losses to make themselves tax exempt. So far, charges of tax evasion filed against Kagem mine, a subsidiary of the London-listed gemstone miner Gemfields, have been unsuccessful – dismissed by the Zambian Revenue Authority. Gemfields owns 75 percent of the world’s largest emerald mine in Kagem, northern Zambia. Auctions of 30 Zambian emeralds and 11 Mozambican rubies have brought the company over $1 billion of combined auction revenue, according to the Creamer Media Mining Weekly. The UK company stated this was a remarkable…
The UK company stated this was a remarkable benchmark for the coloured gemstone sector. Yet Gemfields and the other foreign gem firms are fighting tooth and nail against Zambian efforts to curb corruption in ways that would cut into profits. A proposed tax increase of 1.5 percent to reduce Zambia’s mounting public debt was met with threats by an industry lobbying group to cut $500 million in capital spending and lay off 21,000 workers, according to the Bloomberg news wire. Each year, the Zambian government is believed to lose billions in illicit financial flows mainly related to its mineral resources sector. The Kagem probe was part of a government effort to capture more benefits from the sector.
2&3 Tax Minerals Extraction, I am not sure what you are talking about, and I am.sure you don’t know what you are talking about either. Are you sure that you are not mixing up emerald mining with copper mining which is the one resisting the new tax regime.
That’s a million question. Why do the same mining companies comply with sales tax laws in other countries and fail to comply in Zambia. While coper price is the same, same profit. Some corruption is going on somewhere because the government in its own country should know how much it’s investors are producing and how much profit they are making and how much tax they should pay to the state. All those things should be regulated. Now they are making us to believe the situation that they don’t know either while somebody is benefiting at the expense of fifteen million poor Zambians. I don’t know what the president waits for, I don’t know where the fear comes from. Nationalise the mining companies and maintain the staff, don’t over staff. Clear all cadres and don’t allow them get near…
Please if mines intend to temiinate 10% of Zambians then 20% of expertriates and 40& of other foreign work force ie from DRC Zimbabwe, south Africa, and others should also go.
In kalumbila and kansashi there many Indonesian s,Congolese, southern Africans,Zimbabwean s who are paid more than Zambians for useless works.
It’s time to sweep and keep Zambia clean and green.Zambian mines has produced a lot of mines in other countries, we hear solwezi town in Australia and kansashi in south Africa very nice towns which they fail to do here.when asked to put up a road they make one which last for 6 months no cement added and no care shown. This time pay or go