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CSPR advises Rupiah to re-instate windfall taxes

COMMENT - Can't a non-functioning, corrupt and incompetent president be impeached, or removed from office other than through elections?

CSPR advises Rupiah to re-instate windfall taxes
By Kabanda Chulu in Kitwe
Sun 02 May 2010, 03:30 CAT

NKANA Patriotic Front (PF) parliamentarian Mwenya Musenge has accused the MMD government of committing itself to a lot of “rubbish” on issues relating to the mining sector resulting in Zambians not benefiting from the mineral resources.

And Civil Society for Poverty Reduction (CSPR) executive director Patrick Mucheleka has advised President Rupiah Banda to swallow his pride and re-introduce the windfall mining taxes that can be used in economic diversification.

Commenting on the current copper prices of US $7,600 per metric tonne, Musenge said people would only benefit from the mineral resources through a change of government.

“President Banda’s administration is not passionate about the wellbeing of Zambians and they are not committed to implement the laws that we make as MPs since this government has committed itself to a lot of rubbish on matters relating to the mining industry,” Musenge said.

“Imagine they are failing to implement section 136 of the mines and minerals Act which outlines sharing mechanisms of mineral royalties between central government and local authorities where mines are located and so far the MMD government has collected over K400 billion from 2008 but this money has not been disbursed to respective councils and only a change of government will allow Zambians to benefit.”

He said opposition members of parliament moved a motion in Parliament to urge the government to start implementing section 136 of the mines and minerals Act but MMD parliamentarians refused to support it, claiming they were not consulted.

“The MMD is stealing these funds meant for the councils and President Banda will be answerable and personally I did not support the removal of windfall taxes and I am not part of that collective responsibility because as MPs we should be making laws that suit the wishes of the people and not what is happening,” said Musenge.

And Mucheleka said it was not too late for the MMD government to re-introduce the windfall taxes.
“Government should be seen to be collecting more revenue from the mines and as civil society we are calling for the restoration of the windfall taxes so that these funds can help in the economic diversification process and President Banda should swallow his pride and re introduce these taxes,” said Mucheleka.

But mines minister Maxwell Mwale said the government would not re-introduce the windfall taxes because it would scare away investment in the sector.

“Zambia is not the only destination for investment and such laws will scare away investors who will take their money to other countries,” said Mwale.

Labels: CSPR, RUPIAH BANDA, WINDFALL TAX

posted by MrK @ 3:13 PM