Bantubonse urges govt to honour contracts
Bantubonse urges govt to honour contractsBy Fridah Zinyama
Wednesday May 23, 2007 [04:00]
CHAMBER of Mines general manager Frederick Bantubonse has said the government should honour the development agreements despite calls from stakeholders to review the contracts. There have been calls from different stakeholders for the government to review the mining contracts signed with the mining houses, as Zambians were not benefiting from their resources.
Appearing before the parliamentary committee tasked to look at economic issues chaired by Kabwata member of parliament Given Lubinda, Bantubonse said the mining houses should be given enough time to realise profits from their investments as mining was a long-term business.
“We would like to reiterate that mining is a long-term business and that government efforts should be directed towards growing the economy,” he said.
Bantubonse said when the economy grew, the benefits would reach the people. “The investment that has been coming into the mining sector since 2000 has gone into plant rehabilitations, expansions and new production facilities,” he added.
Bantubonse said the Zambian Income Tax Law allowed for capital allowances and carrying over of tax losses. “The effects of these two items has accounted for the mining sector’s low contributions to government treasury during this capital intensive period,” he said. “Thus as soon as these carry over losses and capital allowances are liquidated the mining companies will be in a tax paying position.”
He said the mining companies’ contribution to the treasury would then be enhanced. Last week, a World Bank adviser Paul Collier said the government had made a tactical error in imposing a tax-free-regime on the copper industry and should quickly impose a windfall tax so that the people of Zambia could benefit from their resources. Collier said the government should quickly impose a windfall tax before the boom in copper prices subsided.
Labels: CHAMBER OF MINES, FREDERICK BANTUBONSE, MINING, MINING CONTRACTS, WINDFALL TAX
posted by MrK @ 8:54 PM
1 Comments:
In defense of the exploitation of Zambia. Hmmm, why is that?
" “We would like to reiterate that mining is a long-term business and that government efforts should be directed towards growing the economy,” he said."
In other words, don't look at the hundreds of millions of dollars leaving Zambia because the mining industry was given away. And this is the head of the Zambian Chamber of the Mines?
"“The investment that has been coming into the mining sector since 2000 has gone into plant rehabilitations, expansions and new production facilities,” he added."
So.what? Who exactly does that benefit? And the government should only benefit from corporate tax? The state should OWN the mines, and get all the profits. The mining companies should be working for the state. Their costs would be exactly the same (and should still go to Zambian suppliers). But all the profits, which are 60% of the value of the mine (at least in the case of Equinox's Lumwana Mine).
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