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Accommodate windfall taxes in mine Act, FDD MP urges govt

Accommodate windfall taxes in mine Act, FDD MP urges govt
Written by Kabanda Chulu
Thursday, June 18, 2009 3:23:53 PM

FDD Sinda member of parliament Levy Ngoma yesterday challenged the government to reconsider amending the mines Act to accommodate windfall taxes since copper prices have started rising on the international markets.

Commenting on the international copper prices that have risen to over US $5,000 per metric tonne, Ngoma said the unreasonableness of the MMD government concerning the mining industry was now clear that it favoured foreign investors. He said even in the face of diversification, copper still remained the mainstay of the Zambian economy, hence the need to safeguard it.

“KK [first president Kenneth Kaunda] protected this industry and even the late president [Levy] Mwanawasa also did the same and this is why he pushed us (Parliament) to enact laws relating to mining windfall taxes. But this Rupiah Banda-led government listened to foreigners that they cannot pay hence removing the windfall taxes,” Ngoma said.

“But now copper prices are rising so what is this government going to do about it because we told them not to remove it from the statutory books but they could not listen?”

He advised that the government should bring amendments to the mining Act to accommodate the windfall taxes.

“They should bring amendments to address windfall taxes under the mining Act because if I bring it up, they will say I am playing politics since I come from the opposition but we want that money since foreign investors are not serious hence failing to follow our laws (paying taxes),” said Ngoma.

In the 2008 budget, the government under president Mwanawasa introduced windfall taxes aimed at capturing excessive profits from the mines since copper prices reached an all-time high of above US $8, 000 per metric tonne. But still, mining companies in Zambia refused to pay and gave various reasons.

And those who paid, about two out of 13 registered companies, attached conditions to the taxes hence in the 2009 budget, the government removed the windfall taxes to accommodate the views of the foreign investors.

Labels: FDD, LEVY NGOMA, WINDFALL TAX

posted by MrK @ 2:23 PM