Sata backs govt on mining taxes
Sata backs govt on mining taxesBy Patson Chilemba, Kabanda Chulu and Chiwoyu Sinyangwe
Wednesday February 13, 2008 [03:00]
PATRIOTIC Front (PF) will back the government to ensure that mining companies pay tax, PF president Michael Sata said yesterday. And finance minister Ng’andu Magande said the government would go ahead and implement new mining taxes despite threats of legal action by the mining companies.
Meanwhile, International Business Consultant Trevor Simumba said the mines operated on the basis of licences and urged the government to withdraw those licences if the mines failed to comply with the new tax measures.
And Federation for Free Trade Unions in Zambia (FFTUZ) president Joyce Nonde said the mines should not be rude and pompous through continuous exploitation of Zambians by resisting paying taxes.
Commenting on the threat by mining companies to use legal means to block the government from implementing the new mining fiscal regime, Sata said mining companies should get out of the country if they did not want to pay taxes. He said Zambia would not have problems finding other people to invest in the mines because copper prices were currently high on the international market.
“This government should be as bold as Dr Kenneth Kaunda. We don’t need to nationalise the mines but if they don’t want to pay, they must get out of the country. We shall go to Chile and get people who know how to run the mines,” Sata said. “We shall back government and fight them and make sure that if they don’t pay tax, it will be impossible for them to run the mines.”
Sata said this was the right time for Zambia to get as much from its mineral wealth especially that copper prices were very high.
He said the mining companies were making too much profit and that it would be immoral for them to refuse to pay the taxes
“They know that they have contributed enough to the MMD and if they threaten to take legal action, they feel some cowards in government will back down,” said Sata. “Why should they refuse when unborn babies are subsidising them? Who are they?”
And Magande said the government would proceed and ensure that Zambians benefited from their God given resources.
“Government is mandated by the Constitution to implement laws to govern the affairs of the country and everyone should abide by those laws. If any one defaults on tax, the relevant law enforcement agency will take up the matter,” Magande said. “Our laws apply to everyone in the country so if they decide to go to court, we won’t stop them but we are going to meet them in court. You mean as government we should not allow you (Zambians) to benefit equitably from the resource that your forefathers safeguarded for you?”
Magande said the mining development agreements were now a dead issue.
“The assertions by mining companies that government should have used instruments within the development agreements should not arise because government has done away with those agreements, maybe the questions you should be asking is, when is government going to implement the law?” asked Magande.
On Monday, when the Chamber of Mines, a cartel of mining companies in Zambia, appeared before the extended parliamentary committee on estimates, they threatened to use legal means to block government from implementing the new mining fiscal regime.
And Simumba said the mines should not play games because the government had powers to do anything within the constitutional mandate regarding the mining sector.
“The mines should not behave funny and play games. Besides, they do not follow regulations regarding pollution and the mines should know that they operate on the basis of licences and failing to comply may result in withdrawal of those licences,” said Simumba.
Joyce Nonde said it would be shameful for the mines to take the government to court because the mine owners paid taxes in their home countries.
“For the past 15 years, Zambians have not been happy with the operations of the mines and the mines should not continue being rude and pompous by embarrassing the government through legal threats because they pay taxes in their home countries,” said Nonde.
And featuring on Radio Yatsani yesterday, Sata said it was unfortunate that most often, the MMD government came up with last minute developmental programmes in areas where elections were taking place. He said the government boasted that they had created the Citizenship Economic Empowerment when poverty levels were still high.
Sata welcomed United Party for National Development defence and security chairperson Captain Cosmas Moono’s statement that it was sad that opposition members of parliament failed to speak intelligently on behalf of their electorates.
He said most members of parliament were only speaking a language that would benefit their “pockets” and not the people. Sata said most members of parliament had reduced the dignity of the House by going to parliament to fulfill their private agenda. He urged the people of Kanyama to vote for PF candidate Colonel Gerry Chanda if they were to be adequately represented in Parliament.
And Sata urged Finance Bank and The Post management to consider offloading some shares to its employees.
“There are two similarities between Finance Bank and The Post newspaper. When they started, we all did not think they would go very far,” Sata said. “But those people now must go further, show the example the way they have grown. Finance Bank should take 15 per cent and give to the workers, 10 per cent give to account holders and they can remain with 51 per cent. What they do with that 51 per cent, that’s there own problem.
“The Post newspaper, because they have several thousands of clients, 25 per cent should be given to the workers and they remain with 75 percent. Out of that, if they want, they can do whatever they like because we want Mr Amos Malupenga, Mr Webster Malido, everybody who is there to feel that they have something in The Post because they have worked extremely hard under very difficult conditions, intimidation and everything. They must see something.
“The Post has got the best conditions in the newspaper industry. The women get six months maternity leave and they have a canteen. They have several other attractive things. But let them not be greedy. Fred M’membe should tell his board not to be greedy. Give the workers 25 per cent shareholding and you Mr Mathani from Finance Bank, give the workers 15 per cent shareholding and 10 percent to the account holders.”
Labels: PF, SATA, WINDFALL TAX
posted by MrK @ 3:18 PM
5 Comments:
Mr Sata stop being a Dictator.
If my govt proposed that BHP-Billiton gave 25% of their shares to the workers they would be laughed at by BHP.
Its a workers right to ask for a payrise or agreement to be put in place where a percentage of shares are given to the worker as part of their salary or yearly bonus.
If the Owner/Manager of the Company says No!
Its the right of the worker to Resign.
If the Owner/Manager/shareholders thinks the worker is an Asset to the company and needs to pay such worker extra to keep their business running smoothly or to reward the worker for hardwork this is the right of the Owner/Managers/Shareholders.
If there is only one Lifejacket in "The Boat" only the captain(Sata) will be saved.
I have worked at my present job for 2 years and i have been given 3 payrises in this time.
All were awarded to me for my hardwork and dedication.
An increase in pay by $12500 and Company car/Phone/fuel all paid for weekly.
When my company goes public and offers Shares i will be one of the first people to buy some.
Mr Scort,
That is great, good on you.
If you are buying stocks for the long term, you should always check the industry your company is in, and at what stage of the business cycle the industry is. You should buy stocks when the industry's business cycle has been at it's lowest point for quite a while.
When interest rates are at historic highs, real estate is great too.
There is no need to go to Chile to get managers to come and run the mines. We have the human resource capable of doing that. One of them is Allen Mate, formerly at Chilanga cement but as of last year i was told he was transferred to Uganda from Canada under Lafarge group.
Those who worked with him at Luanshya division can attest his leadership and performance.
There is no need to go to Chile to get managers to come and run the mines.
Where in the world is there more mining expertise than in Zambia?
In fact, there is no reason why the cannot be run by the state, beyond the temptation of politically appointed (and connected) managers.
But to go all the way to say (as the neoliberals have done) that Zambia shouldn't receive the profits from the mines for that reason alone, is going too far.
Parastatals could be run perfectly well, as long as they are run professionally and without political interference or appointments.
I am not saying the government should nationalize, but they can certainly buy back the shares from a portion of the taxes they will receive in the mines.
When the international stockmarkets bottom out, many of these shares are going to be very cheap.
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