Maravi

Development agreements not excuse to avoid mine tax, says Machila

Development agreements not excuse to avoid mine tax, says Machila
By Mutuna Chanda
Friday February 15, 2008 [03:00]

LANDS minister Bradford Machila has advised mining companies not to use development agreements to escape the proposed tax regime on the mines. And Forum for Democracy and Development (FDD) Chasefu member of parliament Chifumu Banda expressed worry that foreign investors were trying to justify their refusal to share revenues from the country’s mineral wealth.

Contributing to debate on the motion of supply in Parliament on Wednesday, Machila said development agreements did not only comprise taxes but also included other aspects that some mine investors had not fully lived up to.

“Some mine investors have not been honouring their part of the development agreements that have to do with health and safety, environment, labour and immigration,” Machila said. “The mining companies have been getting away with non-compliance to those aspects of the development agreements.”

He said in the event that the government was dragged to court over breach of the development agreements, it would be forced to defend its position. And Machila said the improper ownership of land by some foreigners was distorting land distribution in the country.

“The allocation to my ministry has been reduced by K2 billion in this year’s budget despite having achieved a revenue target of more than 100 per cent. This shall not detract us,” Machila said.

“We shall use the resources to fund the re-entry exercise and flush out those who are illegally owning land in Zambia.”

And contributing to the debate, Banda said he was vehemently opposed to foreign investors’ unwillingness to share the country’s mineral wealth.

“Government is not saying they will take all of the mineral wealth; they are saying let us share. Only those who are greedy will refuse to share the mineral wealth,” Banda said.

“During the Federation of Rhodesia and Nyasaland, Zambia’s mineral wealth was used to build Zimbabwe. Why should we be shy to get a share of our country’s mineral wealth now? Congratulations to the government for taking a bold move. The measures taken by the government are welcome and well-intentioned and government should not be shy to implement them to the latter.”

And Banda challenged finance minister Ng’andu Magande to explain private companies’ debt as part of the country’s national debt.

“I hope the government is not continuing to guarantee private companies’ debt,” Banda said.

Labels: BRADFORD MACHILA, CHIFUMU BANDA, DEVELOPMENT AGREEMENTS, FDD, MINISTRY OF LANDS, WINDFALL TAX

posted by MrK @ 6:08 AM