Zambia is withholding $600 million in VAT refunds owed to copper mining companies and will repay the cash only when they produce import certificates from destination countries, mining minister Christopher Yaluma said on Tuesday.
“That money is owed and we will have to pay as long as they fulfil the requirement. It was slightly above $600 million as at the end of May,” Yaluma told reporters on the sidelines of a mining conference in the southern African nation’s capital.
The government in Africa’s second biggest copper producer last year started enforcing a 2008 requirement that exporters provide it with foreign country import certificates for copper shipments in order to curb tax avoidance.
However, the companies complained that they were often unable to do so because they sold via middle-men.
The companies affected include the local units of First Quantum Minerals, Vedanta Resources, Barrick Gold and Glencore Xstrata.
Yaluma said they had started producing the correct documentation after meeting Ministry of Finance officials three weeks ago.
Officials from the affected companies were not immediately available for comment.
Source:Reuters
Thats good but we need the KCM money
Hold on tighter, the mines don’t pay enough taxes as it is!
Lets have a win-win situation over our God given resources. Let them produce and provide authentic documentation.
On the other hand, the western media will never cease to amaze me with their unbridled stereotyping of countries in Africa.
Why cant Reuters simply state Zambian capital, Lusaka instead of southern african nations capital?
they are laboring and belaboring to avoid being specific, to try and obscure and make our country look like its some tiny spot in the southern african region.
we would appreciate and respect you if you can address my country by its specific name like we do with yours and not by its geographic position nor levels of impoverishment.
Yes let’s solve the KCMgate scandal to save face then leave the MUTEMBO/MMEMBE-DBZgate and the impending Zambia Airlines-Airbus/Boeinggate saga for another day. Election campaign, whenever that will be will be ideal for more solutions out of the bag. Goodluck Zambia. I love you my beloved country.
Dr Eustace Waboza
Very smart move.
This is what’s expected from our people in govt.
Kudos ba PF.
Let’s learn to operate with specificity – if the import certificates are not provided within, say two weeks, the money is forfeited to the state. That is the way to operate ba mambala imwe!! Apply that money to development projects if there is no claim justification in three weeks – period ala!!!
This might also be a good start in the recovery of resources our country has lost. Am equally guilty because am a human resource my beloved country has lost or am I an insignificant proportion of the vast out there. AM SURE TOMORROW WILL LOOK AFTER ITSELF.
Middlemen? Boza!
IT APPEARS LIKE THESE MINING GIANTS ARE BIG TIME CROOKS. DO THEY REALLY WANT TO GET THE REFUNDS WITHOUT AVAILING THE, “import certificates from destination countries”
No compromise and don’t succumb to pressure. What is so difficult with producing a piece of paper and get your money. It simply shows the so called middle man is a fruad and they are using that to still what is our future. Commendable work bagovernment for the pepo
When you start doing the write thing sealing loopholes, they start giving fake reasoning, middlemen. They are determined to fork out a lot, steal when you just blink. Do not trust any of these guys on face value. They are scheming daily how to steal, by open cast thiefing and by sophisticated means. It has been too long, we have lost too much! Get them, boys.
hold on to it forever!
Yes, Please hold that money for ever. Now be specific that after one month of copper export and no receipts are presented, then no refund , period. These guys have been stealing left center and right ……be pro-active so that they are met head on. Don’t listen to their baseless excuse of them selling to middle men…..
Peace and Prosperity to Mother Zambia.
Dont give the money to Mopani. Give it to Mighty. Thank you