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(STICKY) Govt should plough back tax benefits - Mopani CEO

COMMENT - Well CEO Mutati, it's time to start paying taxes.

Govt should plough back tax benefits - Mopani CEO
By Mutale Kapekele in Kitwe
Sun 03 Apr. 2011, 04:04 CAT

THE government should plough back tax benefits into local communities, says Mopani Copper Mines chief executive officer Emmanuel Mutati. Mutati said this on Friday when UN resident coordinator Kanni Wignaraja called on him at his office during her familiarisation tour of Central and Copperbelt provinces.

Mutati said although the company had not declared any dividend, it was a loyal tax payer, adding that the Zambia Revenue Authority could attest to the fact that the company was up to date with tax payments.

Early this year, an audit report for the mine revealed inconsistencies and irregularities in production figures that Mopani submits to ZRA for tax administration.

“We have not declared a dividend because we have had to re-invest to improve our production capability. That investment will extend the mine's life by another 25 years and this is more tangible than declaring a dividend because it will ensure employment to the locals during that time,” Mutati said.

“We would like to see the government ploughing back some tax benefits into the communities within which the mines operate. The people must see tangible benefits for the nation's minerals because they belong to them.”

He said Mopani had to double its workforce in the past six years from 10,000 to 20,000 which he described as having direct benefits to the local community.

Mutati also said the biggest challenge that the mining sector was facing was under capitalisation and the nature of ore bodies which made it difficult to mechanise, leading to lower productivity compared to mines in other countries like Sweden and those in South America.

He also said it was difficult for the mines to diversify into the manufacturing industry as the country had no facilities for improving mining products with the exception of Zamefa, the only local company that buys copper.

“Would like to see the multi-facility economic zones getting into manufacturing and supplying the mines products such as bolts and nuts which we always import,” Mutati said. “We would like to spread more money locally.”

He also mentioned that the mining sector had a serious shortage of skilled manpower.

“The industry is short of surveyors and ventilation officers because there are no facilities to train for diploma and certificate courses,” said Mutati.

Labels: CORRUPTION, HYPOCRISY, MOPANI, TAX EVASION

posted by MrK @ 4:04 AM