Maravi

Mining firms still owe govt K1 trillion in windfall tax

COMMENT - Why on earth do the mining companies get the right to sit down with the government and discuss how much taxes they are going to pay? Who else gets that right? Do marketeers get the right to sit down and discussion how much taxes would be acceptable to them? This stinks of corruption.

Mining firms still owe govt K1 trillion in windfall tax
By Mwala Kalaluka
Sun 11 Apr. 2010, 04:00 CAT

MINISTRY of finance chief budget analyst Felix Nkulukusa on Friday told the public accounts committee that all the mining companies that were assessed for the windfall tax payment still owed the government about K1 trillion in outstanding taxes.

“There are some mining companies that have made part payments,” Nkulukusa said. “The other issue that will come out in the amount owed is the issue of interest.” He said that the law allowed for the waiver of payment of interests and penalties on the money owed.

Submitting before the committee, Secretary to the Treasury Likolo Ndalamei said the issue of the mining taxes was a very difficult question for a civil servant to respond to.

“I will start with the issue of mining taxes,” Ndalamei said.

“It is true that we collected very little compared to what was estimated in the budget. The problem with mining taxes...is that we had the DAs (development agreements) then.”

Ndalamei said some mining companies had threatened legal action on the matter and that they were wondering why the government had unilaterally changed the tax regime.

He explained that this was the reason the government had engaged the mining companies so that the standoff over the changes in the mining regime are addressed amicably.

“The discussions are positive. That issue will be resolved,” said Ndalamei.

Labels: FELIX NKULUKUSA, LIKOLO NDALAMEI, MINING, PAC, WINDFALL TAX

posted by MrK @ 7:56 PM