Maravi

Windfall tax should be reinstated - Kalala

Windfall tax should be reinstated - Kalala
By George Chellah
Sun 26 Dec. 2010, 04:01 CAT

WINDFALL tax should be reinstated, says Jack Kalala. In an interview, Kalala, who is former State House special assistant for policy implementation and monitoring, said Zambians needed to benefit from their natural resources.

“The windfall tax should be reinstated with some modifications to accommodate the concerns expressed by mining companies but not to the detriment of Zambians,” Kalala said. “Zambia should get a fair share, 50/50 share because we are partners with these investors. Zambia’s contribution is the resources, and the investor’s contribution is the investment.”

He dismissed Musoko-twane’s statement that the scrapping of the mining windfall tax was initiated by president Levy Mwanawasa’s administration and that President Banda was just executing that decision.

“If this is what he said, I am sorry to say that it was a misrepresentation of facts. To the best of my knowledge, at no time did president Mwanawasa make a decision to scrap the windfall tax. What had happened was that the mining companies did not object to the windfall tax. They had concern with the method of calculating that tax,” Kalala said.

“The last meeting that the president had with KCM was in London, with the chairman of KCM. He wrote a letter from there to direct the Minister of Finance who was Mr Magande to constitute a team of technocrats to meet the mining companies to discuss on finding the best method for the windfall tax.”

He said there was no way president Mwanawasa would have wanted to reverse that decision because the mining companies did not dispute the windfall tax, their only concern was on the method of calculating the tax.

“And what they had proposed was that it should be calculated after certain production costs have been taken out,” he said.

He said president Mwanawasa took a bold decision to introduce the windfall tax so that Zambians could benefit and that the decision was taken after wide consultations within and outside the country.

“A team of technocrats was constituted and sent to visit some countries such as Sweden and Chile among others. It was only after their report that the decision was made. Dr Musokotwane who was the economic adviser including others like President Banda are aware of this,” he said.

He said Musokotwane’s claims suggest that President Banda is merely implementing the decisions made by the Mwanawasa administration.

“Is he telling us that it is president Mwanawasa who had made the decision to prematurely disband the Task Force (on corruption)? Is it president Mwanawasa who had decided on the dubious acquittals of selected plunderers?” Kalala asked.

“Is it president Mwanawasa who had decided to do away with the abuse of office clause? Is President Banda merely implementing the decisions made by president Mwanawasa to do away with the government of laws and not of men, zero tolerance to corruption and the questionable sale of Zamtel?”

And Kalala has advised to defend President Rupiah Banda’s policies and actions decently and not turn himself into a cadre.

“Remain professional and jealously guard your integrity. Remember a good name is better than gold and silver. Preserve the good reputation which has taken a lifetime to build,” he said.

Labels: JACK KALALA, SITUMBEKO MUSOKOTWANE, WINDFALL TAX

posted by MrK @ 6:52 AM