Maravi

(STICKY) (LUSAKATIMES) Mining tax revenue above target

Total revenues collected by ZRA: 10.2 trillion ($2.04 billion) (Exchange rate: K5,000/1USD)
From mining: 503bn ($100.6 million)

In other words, the mining companies contributed $100 mn to the ZRA's $2.04 billion revenues. That means the mines contributed 4.9% to tax revenues, even though they are a $5 billion industry.

The mines are getting a special deal that the workers are not getting. This is daylight robbery. I say this: while the GRZ refuses to collect every cent of taxes from the mines, donors have no business 'giving' one cent as 'donor aid'. So I am calling their bluff. Stop donating money to this corrupt government that is clearly uninterested in collecting taxes from their friends in the mines. Stop 'donor aid' now.

Mineral Royalty: 249.4bn ($49.88 million)

This is interesting, because Mineral Royalty tax is 3% of turnover, and the mining industry has a turnover of $5 bn, so 3% should be $150 million, not $49.88 million.

Mining tax revenue above target
Thursday, September 16, 2010, 9:23

THE revenue from mining company taxes collected between January and August this year is above target by K265.3 billion, Zambia Revenue Authority (ZRA) commissioner general Chriticles Mwansa has said.

Speaking at a Press briefing in Lusaka yesterday, Mr Mwansa said ZRA recorded an overturn of K503 billion against the target of K238 billion in mining company taxes in the period under review.

He however said that Mineral Royalty collections were below target by K8.3 billion having registered an outturn of K249.4 billion against the target of K257.7 billion.

Mr Mwansa said the reason why Mineral Royalty was below target was because the tax was based on what a particular mining firm was able to sell and not on production.

“This is based on what is sold and may not answer to production. I don’t want to believe that this is below target as things may change by the end of the year,” Mr Mwansa said.

The mining audit was progressing well and ZRA had so far conducted the audits for Kansanshi Copper Mines, Mopani Copper Mines (MCM) and Konkola Copper Mines (KCM).

Mr Mwansa said there were some gaps in the audits which were currently being addressed.

Meanwhile, the ZRA collected K10.2 trillion in gross taxes during the same period. Mr Mwansa said the refunds stood at K2 trillion representing 19.8 per cent of the gross tax revenue.

He said the net tax stood at K 8 trillion against a target of K7 trillion, thereby registering a surplus of K542.9 billion.

“This outturn was largely on account of strong performance of Pay-As-You-Earn (PAYE) and company tax. For the year to date period ending August 2010 compared to the same period in 2009, the trade taxes were above the target in reversing the poor performance last year,” Mr Mwansa said.

He said the increase in trade taxes revenue was attributed to the growth in business volumes where taxable transactions recorded a growth in the value of duty purposes of six per cent as compared to the same period last year.

Mr Mwansa said in the third quarter of 2008, the Government commenced the process of acquiring additional scanners for Katima Mulilo, Kasumbaleasa, Kazungula, Mwami and Nakonde border stations among others.

He said such investment was expected to increase revenue for ZRA. Mr Mwansa said last month, ZRA officers undertook site visits to China to familiarise themselves with the new technology and how it could be applied in Zambia.

[Times of Zambia]

Labels: CORRUPTION, MINING, TAXATION, WINDFALL TAX

posted by MrK @ 5:29 PM