Maravi

(TIMES) New tax regime non-negotiable

New tax regime non-negotiable
Though Government’s ready to listen to mines’ complaints
By Times Reporter

PRESIDENT Levy Mwanawasa’s invitation to mining companies is not to renegotiate development agreements or the new tax regime for the mining industry. A statement released in Lusaka by chief analyst for public relations and Press, David Kombe said the point President Mwanawasa made was that the Government was ready to listen to the complaints by mining companies who had alleged that the rate of taxation had been pegged at 76 per cent or 95 per cent, which would scare away potential investors to Zambia.

“The point the President made was that the Government will listen to their complaint on this alleged error,” the statement said.

The statement stated that the President said that rather than engage in uncoordinated arguments with the investors’ representatives, they should send in advance their submissions in which they identified how this “error” arose, and if there was no such error, they would be wasting everybody’s time requesting for the meeting.

“He (Dr Mwanawasa) made it clear that the Government was merely getting for the people of Zambia a fair share from the value of their mineral resources.

“At 47 per cent tax it was leaving a substantial return on the investment of the investors. This level of taxes was now neither the highest nor the lowest in the world. To that extent, therefore, this level of taxation was not negotiable,” Mr Kombe said.

“The President notes that recently the investors’ representatives actually appeared before a Parliamentary Committee to put their case forward and throughout they did not show any such error for the Government’s assessment of the rate of mining taxation,” he said.

And Caritas-Zambia has commended the Government for its unwavering stance on the new tax regime for the mining sector.

Caritas-Zambia economic justice programme officer, Edmond Kangamungazi said in a statement in Lusaka yesterday that the new tax measures would ensure that Zambians shared in the mining sector successes.

Mr Kangamungazi said that it was, however, cardinal that the Government refocused on responsible spending of the proceeds from the taxes.

“With the above issue in mind we demand that our Government proceeds to act with integrity, and without fear and favour to secure an equitable resolution that ensures the well-being of the people.

“In addition, Caritas-Zambia recommend that the Government refocuses on responsible spending of the increased revenue on mining-related issues such as environment protection, infrastructure development, etc,” he said.

He urged the Government that in all future development agreements which would affect the nation, the civil society and other interest groups should be consulted.

“Government must ensure that the process and outcomes of all such negotiations are transparent and accessible to the general public in order to enhance the confidence of the people to whom the Government owes the ultimate responsibility,” he said.

Labels: CARITAS, WINDFALL TAX

posted by MrK @ 10:04 PM