Maravi

JCTR calls for new mine tax regime

JCTR calls for new mine tax regime
By Margaret Mtonga
Tue 19 Jan. 2010, 04:00 CAT

THERE is serious need to rework the tax regime of the mining sector, Jesuit Centre for Theological Reflections (JCTR) has observed. In a statement, JCTR programme officer for debt and public resource monitoring Privilege Haang’andu noted that the year ending 2009 was a challenge for Zambians because there was a huge challenge in the fiscal policy.

“It was challenging in that the global economic crisis continued to seriously depreciate Zambia’s main foreign exchange earner, the mining industry, seeing the commodity prices tumbling to below US $3,500 per metric tonne in the first quarter of 2009,” Haang’andu stated.

He stated that Zambia had opportunities to grow economically but little achievements were recorded.

“The copper prices improved up to more than US $6,000 per metric tonne in the last quarter of 2009, slowly bringing some stability to national income,” he noted.

“However, there is still a concern in this area. Much as copper is Zambia’s most important source of foreign exchange, accounting for two thirds to three-quarters of its export revenue, tax revenues from the copper sector are not significant contributors to the public finances.”

Haang’andu stated that it was important for the government to take note of the crucial missed opportunities.

“First, the scandalous scam in the Ministry of Health was a momentous revelation that unveiled inherent weaknesses in financial administration in the public service,” he stated. “We continue to hope that thorough investigations will sweep-clean the entire public service system and restore confidence in the Zambian people.”

Haang’andu added that it was important for the government to have a good strategy in order to curb corruption in the country.

“The revelations made by the 2007 Auditor General’s Report were an immense window for the Zambian government to spell out its seriousness in curbing misappropriation and theft of public funds. The correction of past vices and corrupt practices, some of them by personnel still serving in public,” Haang’andu stated.

He stated that the government should put up a strong mechanism that would help the public service officers as public funds were for public benefit and not for private use.

“With so much uncorrected or at least not made known to the public, the taxpayers are left at risk of skepticism and fear that their money this year and in the future could still be stolen, “he stated. “What measures have been put in place to avoid similar occurrences in the future, one of which would be to sack culprits.”

He applauded the government for the change in the budget cycle among others, which he said could make a difference.

“But also there are still systemic problems, for instance, the lack of a strong debt mechanism, unnecessarily bureaucratic and almost impossible processes of acquiring information that should be readily available to the public,” stated Haang’andu.

Labels: JCTR, PRIVILEGE HAANG'ANDU, TAXATION, WINDFALL TAX

posted by MrK @ 6:55 AM