Maravi

LETTERS - Mine Taxes

Resisting mining taxes
By Kenya LondeLondon
Saturday February 16, 2008 [03:00]

I read with anger and disgust the mining companies’ resistance to mining taxes. Among the mining companies that appeared before the committee were Mopani Copper Mines Plc (MCM), Lumwana Copper Mines (LCM), Chibuluma Copper Mines, Kansanshi Copper Mines, Konkola Copper Mines (KCM) and Non-Ferrous Corporation Chambishi Mines.

Submitting before the committee, First Quantum Minerals country manager Chisanga Puta-Chekwe said if the fiscal regime was implemented, Kansanshi Copper Mines would be in trouble with its shareholders.

Puta-Chekwe said there were procedures that needed to be followed by both the government and the mines before the new tax regimes could be implemented.

He explained that in cases where the agreements were violated, litigation was sought in many instances by the affected party. He said it was important for the government to adequately inform the international community about the new mining fiscal regime or they risked making the country an unattractive investment destination for future investments in the mining sector.

It is people like Puta-Chekwe that must face the wrath of the nation. Puta-Chekwe is supporting and comforting a few people who do not need the money they are getting out of Zambia, at the expense of Zambians.

Fiscal policies and collection of taxes, and legislation are the basis of sovereignty. No one should question the laws created by the state's parliament.

The government is violating no agreement by creating new laws. The new tax regime is a new law. Puta-Chekwe and his fellow agents of imperialism should know that there are no procedures that needed to be followed by the government before the new tax regimes could be implemented.

The government should not abdicate its responsibility just to remain attractive. These exploiters were quiet when people were trying to renegotiate the mining agreements because they knew that it was an argument of ignorance.

The government should not negotiate over this; mining is attractive, it has been and always will be. These so-called investors are not doing it for Zambians but for themselves. Anglo American thought no one could come to invest in Zambia to much up their degree.

They missed the point and now they are just hovering around like vultures, ready to cease any vacancy. If any of these companies left, surely another one will come.

The government should tax at output volume not sales revenue. The government is now working. The government should collect tax from the time copper prices started rising.

Labels: WINDFALL TAX

posted by MrK @ 4:20 AM