The Economics Association of Zambia Copperbelt Province Chapter has described as unfortunate and ill timed, the sentiments attributed to ZCCM IH Chief Executive Officer Dr. Pius Kasolo regarding the new mining tax regime.
ZCCM-Investment Holdings (ZCCM-IH) Chief Executive Officer Dr. Pius Kasolo reportedly said during a press briefing that the 2019 planned mining taxes would impact negatively on ZCCM-IH which holds shares on behalf of the Government in the mining companies.
But EAZ Copperbelt Chapter Mathews Muyembe said the motivation behind Dr Kasolo’s remarks begs an answer as government was already engaging the respective foreign mines and positive strides were being made to achieve a mutually beneficial consensus.
“While we appreciate that every company’s objective is to increase its top line and maximise the bottom line, the mandate of this holding is to represent and reflect governments will which is to improve the welfare of its people through provision of employment and social services,” Mr Muyembe said.
“In the recent past we have seen the mining sector drop in GDP contribution as well as
tax avoidance schemes through transfer pricing and continuous declaration of losses. Even with the incentives such as electricity subsidies and tax windows the mining industry participation in economic growth has been declining over the years, he said.
“In October last year government did indicate that no mining operations will be affected by the new taxes, and the fear that job losses would be precipitated by the new taxes was later allayed as mines agreed to meet government and amicably resolve any apprehension around the new tax regime.”
Mr Muyembe said ZCCM should know that government desires more return beyond dividends as the trickle down effect and multiplier effect of job losses, social benefits and opportunity costs of forgoing mining returns is huge.
“We would have expected ZCCM IH to advocate for more returns from the mining industry than issuing statements that are not aiding dialogue between government and the mining stakeholders,” he said.
He said the statement by ZCCM-IH is very unfortunate because most mines like Mopani, FQM, KCM and Luanshya mine among others have indicated that they will not retrench or downscale their activities.
“We advise ZCCM-IH to prioritize the resuscitation of Ndola Lime which falls under its portfolio instead of contradicting government’s position.”
He added, “We expect ZCCM-IH to be in the forefront of giving answers to the many questions Zambians have regarding the mines such as the cost of producing a tonne of copper, how much cobalt is being mined?, where is the gold mined going to? among others.
I may be wrong but Dr Kasolo could be compromised… he seems an agent and an enemy of his own people to me.
I am speculating but all indications are there to arrive at this conclusion.
Thank you
They can’t give you answers to those questions bwana because they are clueless, they only know counting their salaries and bonus. I couldn’t be surprised to learn that Kasolo has been bought with three pieces of silver stacked somewhere in Switzerland.
Thanks EAZ for taking him on! It now appears that after the hardline stance Pius Kasolo had with mining companies,demand for: US$110mn from KCM, US$1.1Bn from FQM, he seems to have realized that with the current government in place, it will pay him better to side with mining houses than to push a nationalistic stance. He therefore appears compromised by both sides, Government and Mining companies!! How can he take this stance instead of telling us everything on the opaque operations of these mining companies?!! SAD INDEED FOR MOTHER ZAMBIA!!
Ba Edgar put some one at ZCCCM- IH who has interest of Zambia no kasolo. Please remove him from there, twapapata
EAZ is also short sighted you think you can grow the economy by taxing companies to death? These taxes will also affect small business
Kasolo is that you? Shut up. Zambia first.
He is just stating the obvious. When you pay more taxes your declared profits shrink and as such so do the dividends to shareholders such as zccm.
Kasolo we know that that is you. Shut up, Zambia first.
Sometimes I wonder whether some people think with their brains or balls.
What we need are mines to pay a fair. Any ***** whose not can leave Zambia
#6 Razor, you are the only one who has stated the correct thing, the rest are thinking like trib.als, very shallow.
What Dr Kasolo has stated is a simple truth and fact. Let me put it another way, he did not condemn the new mine tax but forecasting ZCCM-IH performance next financial year. Dr Kasolo has simply stated that when the mines pay more tax, more money from their revenues will go to government as taxes and since the pot is finite less money will accrue to ZCCM-IH. What is so difficult to understand about that?
And to think that the first person to misinterpret and misunderstand a simple economics/financial fact is an educated and senior official of our supposed think tank EAZ, Mathews Muyembe, leaves me in despair for my country. Ever since Habansoka and his clique took over…
….Ever since Habansoka and his clique took over EAZ, the organisation has become a political nuisance, a real trib.al in dullness.
And if EAZ thinks they can mislead His Excellency The President, they better think again, Edgar Chagwa Lungu is too smart for them, he is much too smart for any trib.al whether upnd or EAZ or any combination or sum of trib.als.
To hell with Laszlo. He is so unpatriotic.
ZCCM, should take the opportunity to redesign it’s logo. Currently It’s a keyhole, through which if you peep in, you see a Goat (Ram), called Billy. How can you expect anything but bleating!!! Maaaaaa, maaaaaa.
Please support Zambia; collect more to GDP.