Maravi

(STICKY) Fundanga blames low mining taxes on fiscal regime

COMMENT - Really, minister Fundanga? Foreign mining companies should not be blamed when they are caught 'transfer pricing' (money laundering) to avoid paying of even the variable profit tax? No way. Also, we can't have politicians whose first reflex is to protect foreign mining companies. And why does Caleb Fundanga never make any sense? "you can’t accuse somebody of not paying tax when they have paid" - what does that mean, when they are caught evading taxes?

Fundanga blames low mining taxes on fiscal regime
By Chiwoyu Sinyangwe
Tue 01 Mar. 2011, 04:01 CAT

BANK of Zambia governor Dr Caleb Fundanga says the low contributions of foreign mining firms to the country’s treasury reflects the current tax regime. Dr Fundanga said foreign mining firms should not be blamed for their low contributions to the country’s revenue basket.

¨I have no view on whether the mining fiscal regime is right or wrong . . . it is a complex discussion and we are not tax experts,¨ Dr Fundanga said. “The question of whether somebody is paying tax or not really depends on the current definition of their tax liabilities.”

The mining sector, which is the country’s economic mainstay, accounts for more than 80 per cent of Zambia’s exports, but only contributes about 9.7 per cent to the gross domestic product and 2.2 per cent to total tax revenue.

Dr Fundanga said there was a debate on the whether the country should restore the windfall tax to help the country tap into the high international metal prices.

“The question of whether they foreign mining firms are paying is neither here nor there,” Dr Fundanga said.

“They are paying what is demanded by the current laws. What is defined as the current tax is an issue that is defined by the government.”

He said foreign mining firms should not be accused of not paying taxes when they had.

“Whether somebody is compliant with the existing tax regulation or not . . . you can’t accuse somebody of not paying tax when they have paid,” said Dr Fundanga.

“Perhaps the question is the regime that is in place. That is is where the debate should be.

Labels: CALEB FUNDANGA, TAX EVASION, WINDFALL TAX

posted by MrK @ 3:41 PM