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(LUSAKATIMES) The Mining Sector contributed only 2% in 2010 -Milupi

COMMENT - I don't know if these numbers add up, but the removal of the windfall tax is an act of treason against Zambia.

The Mining Sector contributed only 2% in 2010 -Milupi
TIME PUBLISHED - Wednesday, August 31, 2011, 7:20 am

Alliance for Democracy and Development nominated candidate Charles Milupi and his wife before filing his nomination papers for the Luena seat at Ushaar Basic School.

THE mining sector in Zambia has failed to contribute effectively to the economical development of the nation, Alliance for Democracy and Development [ADD] president Charles Milupi has charged.

Speaking in an interview on Tuesday, Milupi said out of 2.7 billion US$ dollars the mining sector produced last year only 77 million US$ dollars representing 2 percent was contributed to the national treasurery a situation he said Zambia would continue to sink if the windfall tax was not reintroduced by those in government.

He said the failure by the current government to continue with the change late president Levy Mwanawasa introduced in the mining sector of windfall tax has affected the growth of the economy in relation to revenue collection from the mining sector.

Milupi said it was wrong for President Rupiah Banda’s government to repeal the windfall tax law which allowed Zambia to raise money from its minerals, adding that the removal has created unnecessary pressure on the back of government.

He said it was wrong and saddening despite people talking and crying for the removal government had stubbornly used numbers in parliament to force for the removal of the windfall tax.

“For 2010 alone Zambia has lost an opportunity based on the projected production of copper based on the projected copper prices which is about 7500 US$ dollars per tonne. As a country we have lost an opportunity to earn over 600 million US$ dollar from copper, this money is more than all the monies donors can bring in, both local and external loans Zambia borrows for its management in various sectors of the economy. The removal of the windfall tax was done in a careless manner by the MMD government by the use of numbers in parliament, despite knowing that no investor would lose out in any form,” said Milupi.

He regretted that President Banda’s government had failed completely to understand that issues of windfall tax were not meant to disadvantage foreign investors but promote economical development and equal sharing of the national resources among all players.Milupi said the issue of attracting investors by removing the windfall tax would not help the country but keep on putting more pressure on the government’s overdependence on donor community for its sustenance.

Labels: CHARLES MILUPI, TAX EVASION, WINDFALL TAX

posted by MrK @ 2:47 PM