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Withdrawal of windfall tax cheers mines

Withdrawal of windfall tax cheers mines
Written by Fridah Zinyama
Sunday, February 08, 2009 8:17:13 PM

THE Chamber of Mines has welcomed the government’s decision to scrap off windfall tax, saying the move will minimise problems being faced in the sector.

Responding to a press query, Chamber of Mines president Nathan Chishimba stated that the government’s decision to listen to the concerns of the mining sector was important as it created the necessary environment for productive engagement and mutual understanding of issues that would develop Zambia.

“We recognize that the Minister of Finance [Dr Situmbeko Musokotwane] was faced with some very difficult choices in coming up with appropriate measures to assist the mining sector, given the very turbulent times our economy and the world at large is passing through,” he stated.

Chishimba stated that as much as the budget measures would provide relief for the mining sector, Zambia could only mitigate but not avoid the effects of the unprecedented global economic crisis.

“Which is in most respects beyond the purview and influence of any interventions and policy measures the government of Zambia may initiate. I therefore wish to reiterate the industry’s position that we must avoid trivialising the effects of the global economic crisis and take a wider view of current global economic events. It is only when we do this that we will appreciate the various difficulties that face our mining industry, and other sectors of the economy,” he observed.

And Chishimba stated that there was also urgent need for structural reform to dismantle the exceedingly high cost structure of doing business.

“We are pleased that government has made mention of this in the 2009 budget, but we need to accelerate current efforts by government and engender a change of mind set in the various vendors of goods and services in the country to appreciate that competitive pricing of goods and services will lead to Zambia being a more competitive place to do business,” he stated.” “We simply cannot sustain the current status quo in which Zambia is perceptibly one of the highest cost countries to operate in, with prices of goods and services being well above many comparable places in the region and the world at large.”

Chishimba stated that the mining industry in Zambia would continue to work with the government in following through decisively the measures announced in this year’s national budget, and to sustain the fortunes of the country’s mining industry.

Labels: MINING, PAYE, WINDFALL TAX

posted by MrK @ 8:17 PM