ZRA collects K255.6bn from mining companies
ZRA collects K255.6bn from mining companiesBy Chiwoyu Sinyangwe
Thursday August 14, 2008 [04:00]
THE Zambia Revenue Authority (ZRA) has collected about K255.6 billion in mine taxes on account of all mining companies in the country complying with the new mining fiscal regime. And ZRA has collected revenue of up to K2.4 trillion in net tax during the second quarter of this year against the target of about K2.2 trillion.
ZRA commissioner general Chriticles Mwansa told journalists yesterday during the end of second quarter media press briefing that the biggest contribution from mining taxes came in from windfall tax which stood at K109.5 billion.
Mwansa explained that the mineral royalty in the review period stood at K70.54 billion of which, K6.39 billion, K29.67 billion and K34.48 billion were collected in April, May and June respectively.
He said the mineral royalty paid so far in the last two months under the new mining fiscal regime had averaged K25.75 billion per month compared to an average of K5.2 billion per month that the mines used to contribute to the treasury in 2007.
"However, other tax returns such as provisional company income tax returns, windfall tax return were due on 30 June 2008," Mwansa said. "To this effect, in July 2008, a total of K255.6 billion was paid in mining taxes of which windfall tax stood at K109.5 billion, company income tax was K105.1 billion and mineral royalty contribution was K41.0 billion."
Asked whether there were some mining companies that were still resisting the new mining fiscal regime, Mwansa said: "The mine have, by and large, complied with the new regime. They have met with us; they have met with government to indicate the effect of that regime.
We intend to continue meeting them to make further clarification should there be failure on their part mines to understand other details involved, but I must say that mine is to implement the law. If the law demands that they mines pay, then I go and effect."
The country's new mining fiscal regime which was introduced on April 1, 2008 caused uproar from the major mining companies who insisted the government maintains the Development Agreements that were in favour of the mining conglomerates operating in the country.
And Mwansa said ZRA collected over K3.179 trillion in gross taxes in the period under review while refunds stood K777.9 billion 24.5 per cent of gross taxes.
Mwansa attributed ZRA's surplus performance to higher tax revenue collection recorded largely under company tax, Pay As You Earn (PAYE), withholding tax, mineral royalty, excise duty and trade taxes.
"After refunds of K777.9 billion, the net tax stood at K2.4 trillion against a target of K2.1 trillion, thereby registering a surplus of K248.8 billion (about 11.6 per cent)," said Mwansa.
Labels: WINDFALL TAX, ZRA
posted by MrK @ 5:52 AM
1 Comments:
At K3800/USD, that is a mere $67 million, well short of the $413 million, and a pittance compared to my estimate of at least $2.4 billion in profits made by the mining companies. You have to wonder why the government is so reluctant to collect the full amount from the mining companies and why it took so much activism. They seem to be much more comfortable borrowing from the workers, who are the only taxpayers left in this neoliberal economy.
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