Maravi

ZCTU calls for action on new tax regime

ZCTU calls for action on new tax regime
By Mutuna Chanda
Sunday January 13, 2008 [03:00]

ZAMBIA Congress of Trade Unions (ZCTU) president Leonard Hikaumba has said the labour movement is tired of listening to government pronouncements that are not implemented. And Federation of Free Trade Unions of Zambia president Joyce Nonde has said the new tax regime announced by President Mwanawasa has come a little too late when the country has already been swindled.

Commenting on President Levy Mwanawasa’s opening speech to the second session of the 10th National Assembly on Friday, Hikaumba said he hoped what the President said would be implemented, particularly the measures on a new tax regime that would enable Zambia benefit more from mining revenue.

Hikaumba said this in reference to the government’s failure to implement the increase in mineral royalties which finance minister Ng’andu Magande announced in the 2007 budget.

“We hope what has been pronounced is on the government’s agenda for action,” Hikaumba said.

Magande in last year’s budget proposed to increase mineral royalty tax from 0.6 per cent to three per cent for base metals and from two to three per cent for precious metals, but this was not effected for large scale mines which had development agreements with the government.

Hikaumba said Zambians had not benefited much from the country’s mineral resources.

“It’s not just copper, it’s also from gemstones, other minerals and other natural resources,” Hikaumba said. “Government should move fast and ensure that we maximise benefits from our natural resources.” He said the expected increase from mining revenues should translate into improvement of the welfare of workers countrywide.

“We should also make sure that equitable distribution of revenues from the mines encompasses workers,” Hikaumba said. “We want to see a significant improvement in the conditions of service for workers.”

And Nonde said the current generation would go down in history as one of the most irresponsible, going by the development agreements the government had with the mines and the failure to act quickly on the tax regime to enable Zambians benefit from high metal prices.

“In our time and the history of the country, those development agreements were the worst. I don’t believe those agreements were made by Zambians,” Nonde said. “We have been giving away our resources for nothing in return. The last 15 years for our country have been wasteful and whoever benefited from those development agreements among us Zambians will be swallowed in the air.”

She said her union was happy the President Mwanawasa pointed towards acting on development agreements and a new tax regime.

“We hope they will act swiftly now. We have had a lot of times when things have been promised without the government having the intention to act,” Nonde said. “Like in the budget, a lot of promises are made but they are not honoured. That is why we have money being returned to the treasury.”

She cited the failure by the government to move swiftly in implementing the broadening of the tax base, non-action on the Auditor General’s reports and the mismatch in paying pensioners their retirement packages.

“Year in and out the government talks about widening the tax base but we see little of this happening,” Nonde said.

“They even know the sector which to tax but when it comes to implementing, they are stuck, fearing that they are going to touch the voters.”

And United Liberal Party (ULP) Sakwiba Sikota demanded a comprehensive report on what led to the fish disease in Western Province and what would be done to prevent it from recurring.

President Mwanawasa in his speech said the fish disease on the upper Zambezi last year negatively affected the livelihoods of many people and that the government had commissioned an independent study to ascertain the cause and extent of the disease.

“Following the recommendations of the team, government will carry out a number of measures including revision of the legal framework regarding definition of stock diseases to include fish and fish diseases, continued collaboration and improved consultations with the countries sharing the Zambezi river basin,” said President Mwanawasa. “It will also conduct routine monitoring in the Zambezi river system to determine patterns of disease occurrence and increase public awareness on the disease.”

Labels: DEVELOPMENT AGREEMENTS, FFTUZ, JOYCE NONDE, LEONARD HIKAUMBA, MINING AGREEMENTS, TAXATION, ZCTU

posted by MrK @ 4:04 AM