Maravi

Govt won’t bring back windfall tax regime to parliament, says Mwale

COMMENT - If the government refuses to tax the mines, don't pay your income tax. It is the only power over these scumbags you have.

Govt won’t bring back windfall tax regime to parliament, says Mwale
Written by Kabanda Chulu
Thursday, July 16, 2009 4:59:00 AM

MINES minister Maxwell Mwale has said the government will not bring back the windfall tax regime to parliament for amendments but will create laws to attract credible investments in the mining sector. And finance minister Situmbeko Musokotwane has said Luanshya Copper Mines (LCM) owed government K3.9 billion (US $ 755,809) in Pay As You Earn as at January 2009.

Responding to PF Kabwata member of parliament Given Lubinda, who wanted to know what the government was doing to maximise revenue from the mines, Mwale said the government was not run like a ‘ntemba’ but with long-term guidelines that must not be changed over night.

“We are not running ‘ntemba’ but a government of laws that will attract credible investors and we cannot revise taxes over night because we may lose the confidence of investors,” Mwale said.

And in response to PF Chipili member of parliament Davies Mwila about the termination of the contract given to Keren Mining Limited at Maamba Collieries Mines, Mwale said management terminated the contract because of a breach to meet agreed targets.

He said the agreed targets were that after Maamba Mines advanced US $ 500, 000, Keren Mining was required to mobilise within four months to commence coal production, dewater, load and haul coal from a designated mining area on behalf of Maamba mines.

He said as an interim measure to replace Keren Mining, Maamba mines have instituted a selective tender of four contractors’ namely Barloworld Equipment, Pro Earthworks, Harberton Equipment and Scirocco Enterprises.

And Dr Musokotwane said LCM had not finished paying statutory obligations and contractors hence government signed a cash collateral agreement with LCM that provided for drawing up of a scheme of arrangements that would see how debts would be settled.

Dr Musokotwane said LCM owed the government K 3.9 billion in PAYE and the debt would be settled after execution of the scheme of arrangements taking into account that statutory obligations have a first call on any revenue collected.

He said LCM also owes Luanshya Municipal Council and creditors such as Prosec, Armco and Mpelembe Drilling, whose dues would be paid after the scheme of arrangements was finalised.

Labels: CORRUPTION, MAXWELL MWALE, NEOLIBERALISM, SITUMBEKO MUSOKOTWANE, WINDFALL TAX

posted by MrK @ 3:59 AM