Maravi

(STICKY) CSOs insist on 25% windfall tax

CSOs insist on 25% windfall tax
By Gift Chanda
Tue 27 Mar. 2012, 12:59 CAT

CIVIL society organisations have vowed to continue pushing for the reintroduction of 25 per cent windfall tax on base metals even if it means being called lunatics. And the Council of Churches in Zambia has condemned finance minister Alexander Chikwanda for calling those advocating the reintroduction of windfall tax on base metals as lunatics. Last week, Chikwanda described as lunatics those calling for the 25 per cent windfall tax on base metals.

"We shall never be tired to call on the government to introduce windfall tax," said Platform for Social Protection Zambia (PSPZ) research and advocacy officer, Phyllis Chikula during a press briefing on Saturday.

Chikula said there was urgent need for Zambia to reduce on donor dependence to finance its national budget, and that one way of doing that was improving domestic resource mobilisation through a proper tax system.

PSPZ is a national platform of civil society organisations advocating the development and implementation of effective policies and programmes for social protection in Zambia.

"We live in one of the richest countries in Africa amidst some of the poorest people in the world. This paradox of poverty is simply unacceptable," Chikula said.

Official data shows that poverty levels have remained persistently high in Zambia, with at least 60 per cent of the population falling below the poverty line.

Such very high poverty figures suggest a population under extreme lack of income and hence undergoing livelihood stress.

Chikula called for increased spending on social protection to reduce poverty levels.

She observed that government spending on social protection programmes had over the years been dwindling partly because the government was unable to finance such programmes using domestic resources.

She said social protection received 4.19 per cent of the budget allocation in 2008 while the allocation dropped to 2.93 in 2009.

According Chikula, the situation was even gloomy in 2010 as the allocation reduced further to 2.48 per cent of the budget and stood at 2.67 and 2.37 per cent in 2011 and 2012 respectively.

"Our concern is the 65 per cent poor people of Zambia who are continuously hardest hit by everyday challenges...we have to protect their warfare and, therefore, we have to start seeing social protection as an investment," said Chikula.

"We recommend that the government must consider as a matter of urgency to improve domestic resource mobilisation such us improved tax systems and administration, especially with regard to taxing the mines."

And Council of Churches (CCZ) general secretary Rev Suzanne Matale said they were saddened by Chikwanda's remarks against those advocating the re-introduction of windfall tax on copper.

"The Council of Churches in Zambia is one such organisation which has maintained that windfall tax was one way of ensuring that fair taxes are paid by investors in mining companies so that the proceeds could be used to develop the nation and make Zambia a better place for all but to be referred to as 'lunatics' and to dismiss the opinions of others with such strong words is unfortunate because it reduces the intelligence of others," she said.

Rev Matale said it was undemocratic for the PF to disregard with impunity people's participation in the good governance of the country.

She said it was unfortunate that Chikwanda could call windfall tax advocates lunatics when the PF came into power making everyone believe that it would reintroduce the windfall tax.

"At that time, it was our hope that they knew and they understood and fully appreciated the complexities and intricacies of the matter for them to come to that conclusion. It is unfortunate that six months down the road this campaign issue has become an issue that is only discussed by lunatics which sweeping statement may include some of the PF campaigners of windfall tax before the elections," she said.

Rev Matale called for civil language in discussing matters of national interest.

"It is our very high expectation that stakeholders will uphold the value of mutual respect for all, regardless of the differences in opinion. We should learn to agree to disagree and to move on as one people who value each other and who respect one another," said Rev Matale.

"If, as we are now told, windfall tax is a no-go area at least we expect that a fair but well-calculated tax regime will be put in place for the good of our country. Zambians know that the mineral wealth belongs to them and therefore a win-win situation is all we ask for and the investors should understand this."

Labels: CSO, PF, SUZANNE MATALE, WINDFALL TAX

posted by MrK @ 8:32 PM