Maravi

‘Govt should listen to calls for windfall tax’

‘Govt should listen to calls for windfall tax’
By Edwin Mbulo in Livingstone
Sat 04 Dec. 2010, 04:00 CAT

A LABOUR leader says the government should heed the people’s call over the windfall tax. Mubiana Sitwala, the president of the Hotel Catering and Allied Workers of Zambia (HCAWUZ), said many sectors in the country were heavily taxed and yet they did not make as much money as the mines.

“I appeal to the government to pay attention to many observations that have been made by various economists and envoys over the windfall tax. Let Situmbeko Musokotwane tell the President the true value of windfall tax,” Sitwala said in an interview yesterday.

“I see no reason why the MMD government is being jittery over the introduction of this tax when mines are making huge profits over our resources.”

Sitwala said the country’s tax regime was highly biased towards the formal sector.

“We have repeatedly submitted to the government to vigorously capture the formal sector in a bid to raise the necessary revenue for the country. This has always fallen on deaf ears as the government seems to lack capacity to implement mechanisms on how to collect this revenue,” Sitwala said.

“This tax is self regulatory as it only captures the excess profit on revenue. The argument being put across by those supporting the outright removal of windfall tax lacks comprehension. I would have expected the government to listen to divergent views when they come up with decisions of this nature.”

He said the workers had continued to pay heavy taxes from their meagre salaries and yet multinational companies had continued to enjoy tax exemptions.

“This trend cannot continue and it is high time we put measures for our posterity to benefit from wasted resources like copper. We advocate for a strict tax regime, that will benefit the country and windfall tax is not a burden to mine owners. We should not treat investors with jelly hands, while they exploit our resources to their benefit,” Sitwala said.

He said the country could benefit from the windfall tax and subsequently improve the social sector. Sitwala said it was illogical for the government not to listen to professional advice and instead give political answers.

“I thought that commerce minister Felix Mutati was an expert on economic issues, but his recent statement on the windfall tax leaves me with a lot of worries when it comes to mixing politics and economics,” Sitwala said.

He said the government was busy using President Rupiah Banda to campaign for next year’s elections and showing the nation the schools and hospitals that were currently being constructed.

“Where will the teachers come from? Where will the educational materials come from? The hospitals need equipment and medicines and these can only be procured using profits from the mines instead of relying on tax payers moneys,” said Sitwala.

Labels: HCAWUZ, MUBIANA SITWALA, WINDFALL TAX

posted by MrK @ 9:16 PM