Maravi

Enforce mine tax regulations, Mwale urges government

Enforce mine tax regulations, Mwale urges government
By Gift Chanda
Wed 20 June 2012, 13:22 CAT

FORMER mines minister Maxwell Mwale says the MMD regime had challenges tightening mine tax collection regulations due to poor staffing levels in institutions such as the Ministry of Mines.

Mwale, who is also MMD committee on mining chairperson, admitted that the former regime failed to enforce measures aimed at curbing cheating in the mining sector. The government last week tightened the country's regulations on taxation of mining companies to boost compliance and revenue collection.

"This is a welcome move as Zambian people want to benefit more from the mining sector through taxation," Mwale said in an interview.

"However, I would like to make it known that those measures were already in place. For instance, the mining firms are supposed to submit their monthly reports, quarterly reports and their annual reports where they indicate the volumes of ore mined, and what they have processed but to ensure enforcement is where the government has always done badly."

He said the Ministry of Mines had challenges then to enforce those existing systems partly because of the poor staff levels.

"The challenge that was there in the Ministry of Mines is that, believe it or not, virtually for five years we were not able to recruit personnel. I am not talking about creating new positions but replacing those who had left," he said.

"My only advice is that let the current government ensure that the laws are enforced. It is the same as the collection of taxes; it is just an issue of enforcement. The government needs to ensure that they enforce whatever is in black and white so that the mines can comply."

Several stakeholders have expressed concerns that mineral production has been improving over the years but this improvement has not been matched with a corresponding increase in revenue to the government.

Data shows much of Zambia's exported copper destined for Switzerland, little of it shows up in Swiss customs figures, raising questions about transparency.

Mines minister Christopher Yaluma, who last week announced new measures aimed at curbing cheating in the mining sector, said that mining companies would now be required to provide information on tonnages, type and grade of ore mined, quantities and the end product.

Yaluma said mining companies would also be required to submit annual reports on the recovery percentages and efficiency of all mining and metallurgical processes including details of the quantities of minerals sold and their average selling price.

He said failure to comply would result in revocation of licences and other punitive measures.

Labels: MAXWELL MWALE, MMD, WINDFALL TAX

posted by MrK @ 2:38 PM