Govt, Maamba Collieries new owners work to liquidate debt
By Namatama Mundia
Sat 30 Jan. 2010, 04:00 CAT
GOVERNMENT is currently holding negotiations with Nava Bharat, the new owners of Maamba Collieries, aimed at liquidating the debt owed to the mine employees. Responding to parliamentary committee on government assurances chairperson Roan member of parliament Chishimba Kambwili who wanted to know if Nava Bharat of Singapore (NBS) Private Limited were ready to pay the employees, mines ministry permanent secretary Dr Godwin Beene said his ministry was negotiating with the Singaporean company on the debt.
“I am informed that there are negotiations going on the matter. I am told that it will be taken care of,” he said.
Dr Beene said Nava Bharat was well aware of the status of Maamba Collieries.
He said the issue of employees’ indebtedness could be regressive if not well handled.
And Dr Beene submitted that the creditors of Maamba Collieries Limited (MCL) agreed to a 75 per cent discount on all the debt that MCL owed them.
“The scheme of arrangement to write off 75 per cent of debt owed was sanctioned by the High Court on 27 December 2007,” he said. “ZCCM-IH funded the scheme of arrangement and the same was implemented in January 2008.”
Dr Beene added that the sale and purchase agreement for the sale of 65 per cent shares of MCL to NBS was signed by the government, ZCCM-IH and NBS on December 18, 2009.
He said the new owners of MCL were expected to recapitalise the coal mine and develop a new Thermal Power Plant and both projects were to be financed by debt equity.
Dr Beene also said the government was pressing Konkola Copper Mines (KCM) to consider opening the Nkana smelter.
“Government has engaged KCM management to look at this issue from a national level to re-open the smelter. This will require massive capital injection to modernise the smelter and make the operations cost effective,” he said.
Dr Beene said there was great urgency to bring back to operation the shut down Nkana smelter in order to ensure that all concentrates produced in the country were smelted and refined within the country.
Dr Beene disclosed that KCM was looking at the option of partnering with other investors to recapitalise the smelter.
“Government will ensure that the negotiation with KCM management result into re-opening of the smelter before 2011,” he said.
Dr Beene attributed the slow pace of geological mapping of the country to the shortage of geologists at the Geologists Survey Department.
Labels: GODFREY BEENE, MAAMBA COLLIERY, NAVA BHARAT VENTURES
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Rupiah has hijacked national budget, charges Beene
By Mutale Kapekele
Mon 04 Jan. 2010, 04:01 CAT
PRESIDENT Rupiah Banda has hijacked the national budget and is disturbing development plans, Itezhi-tezhi member of parliament Godfrey Beene has charged.
In an interview on Thursday, Beene said it was disturbing that President Banda impulsively instructed the Minister of Finance to divert development funds to projects that were not planned for.
“President Banda should understand that when we make the national budget, it’s because we want to take development to all parts of the country,” Beene said. “It is very disappointing that the executive has hijacked the budget and parliament is just a rubber stamp.
For instance, the RDA (Road Development Agency) has its work plan but he (Banda) demanded that they work on the road (Chipata-Mfuwe) that was not even on the budget. He did the same in Western Province by committing additional funds to the Mongu-Kalabo road project just because he has been ditched there. In Kasama it was the same story.”
He said President Banda should respect the plans of the nation and the national budget.
“We want the whole country to receive their share of the national cake, that is why we plan every year,” Beene said. “But how do we develop and implement our plans when one person can just wake up and committee so much money to unplanned projects? The President should respect the plans of this nation. He should respect our national budget.”
He said the Itezhi-tezhi power station project had been talked about since the first Republic and yet nothing had been done so far.
“The UNIP government spent more than US $200 million on building infrastructure for the Itezhi-tezhi power station and ever since the MMD came into power, they have been saying they will finish the project but nothing has been done till today,” said Beene.
“And now someone can ask for so much money to build roads in a small game park. What they should be looking at is the Kafue National Park which is one of the largest in Africa. The roads there are pathetic and the rehabilitation works have stalled.”
Labels: 2010 BUDGET, GODFREY BEENE, RDA, RUPIAH BANDA
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Mines threaten to sue State
By CHARLES MUSONDA and NKWETO MFULA
SOME foreign mine owners have threatened to sue Government over the new tax regime for the mining sector. But the government says it is ready to defend its position should any of them decide to institute litigation.
Last week, Minister of Finance and National Planning, Situmbeko Musokotwane, held a closed-door consultative meeting with the Chamber of Mines to address challenges facing the mining sector.
The investors want the government to restore their inherent rights that were enshrined in developments agreements they signed when they acquired former ZCCM assets.
In paying the new taxes, the investors disclaimed that the payments did not necessarily mean that they had accepted the tax regime and that they reserved the right to take legal action.
This is according to the parliamentary committee on estimates’ report that was released last week.
Committee chairperson Godfrey Beene said this was one of the major challenges faced in implementing the fiscal regime.
Mr Beene said increasing prices of oil and raw materials had negatively affected implementation of the windfall tax because the unit production costs for some of the companies had risen to levels higher than the first trigger price.
“The trigger price of the windfall tax had been set at US$2.50 per pound of copper, but some of the companies were reporting costs of production beyond this level,” Mr Beene said.
He said lack of critical manpower such as geologists and mining engineers in the Ministry of Mines and Minerals Development had made it difficult for the government to effectively monitor the mines’ operations.
“The absence of offices for the Ministry of Mines and Minerals Development in all provinces where mining activities were taking place entailed that the ministry’s headquarters in Lusaka could not adequately monitor activities of the mining companies in various parts of the country,” he said.
Mr Beene said the Zambia Revenue Authority (ZRA) did not have adequate information communications and technology and manpower to effectively audit the mining companies for tax purposes.
He, however, noted that the ZRA had established a new unit to specifically deal with challenges associated with taxing the mining sector.
The government has mobilised resources to help the ZRA enhance capacity building requirements to meet the challenges imposed by the new mining sector tax regime.
Efforts are also underway to make the taxpayer education campaign more aggressive to sensitise all major mines and audit them for purposes of ascertaining accuracy of their income declarations.
Mr Beene said Government was confident that if contentious windfall tax issues were addressed, mining companies would meet their obligations.
“Capacity will be strengthened in all relevant institutions dealing with the mining sector so that benefits resulting from the introduction of the new mining fiscal regime could be realised,” he said.
Meanwhile, the Chamber of Mines has written to the Ministry of Mines and Mineral Developments on the challenges being faced by the industry, among them the effects of low copper prices on the international market.
Chamber of Mines president Nathan Chishimba said in an interview in Ndola yesterday that the chamber had written to the ministry of mines to register the sector’s concern on the global recession and its effects on the industry.
He cited the low copper prices on the international market as one of the concerns that had been brought up.
Mr Chishimba could not state the other concerns raised, saying they were not for public consumption.
And Mr Chishimba said the meeting they held with newly-appointed Minister of Mines and Mineral Development, Maxwell Mwale and his counterpart at Finance and National Planning, Situmbeko Musokotwane, was the beginning of dialogue with Government.
He said the chamber welcomed Government’s willingness to hold discussions with the mining sector.
Mr Chishimba was optimistic that the two ministries’ willingness to dialogue with mining companies would yield solutions to matters affecting the mining industry in Zambia.
On Saturday, Dr Musokotwane said although the declining prices were a setback for Zambia’s economic growth, there was still hope for improvement.
He said there was no need to lose hope in the country’s economic growth because of the continued investment in the mining sector.
Labels: GODFREY BEENE, MINING, NEOCOLONIALISM, WINDFALL TAX
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Beene expresses concern over supplementary appropriations
By Lambwe Kachali
Friday September 12, 2008 [04:00]
PARLIAMENTARY committee on estimates chairperson Godfrey Beene has expressed concern that supplementary appropriations have continued to surpass the original budget estimates. Presenting a report on the committee's observations during the second reading of the supplementary appropriation Bill, Beene who is also Itezhi-Tezhi UPND member of parliament, said the committee noted that a number of subheads had supplementary provisions above 1000 per cent of the original budget.
"For example, under the Ministry of Justice, Attorney General's chambers-legal consultancy programme, an amount of K1,000,000,000 was provided in the 2006 budget, but the vote received supplementary funding of over thirty billion kwacha K30,627,647,956, amounting to over 3000 per cent of the initial provision. Similarly, the Ministry of Foreign Affairs, Paris mission had slightly over seven hundred and sixteen million K716,581,394 as budgetary estimate for office administration but received well over thirteen billion K13,237,374,659, or over 1,800 per cent of the provision, as supplementary provision to finance the procurement of a residence," Beene disclosed.
"Another example was the Ministry of Agriculture and Cooperatives which had a budgetary provision of fifty billion kwacha K50,000,000,000 to be remitted as a grant to the Food Reserve Agency FRA under the Agribusiness and Marketing Department, but received well over seventy six billion kwacha K76,262,394,482 as supplementary funding, which amounted to over 150 per cent of the original estimate."
Beene said such a situation where the actual budget deviates from the original estimates was indicative of a serious problem in the planning and budgeting system, and rendered the entire budgeting process redundant.
"Notwithstanding this, there is a reduction in the total amount of supplementary budget for 2006, K331,143,234, 891 as compared to that incurred in 2005 which was K453,584,031,243. Nevertheless, the amount is still unacceptable," he said.
Beene cited low ceilings imposed by the Ministry of Finance at the time of budgeting as well as poor forecasting of revenues by the ministry as major causes of such problems for the routine activities.
"In light of this, a limit be set on the amount of expenditure that can be incurred under any specific head of expenditure in any given financial year to encourage more careful planning by all spending agencies as well as better revenue forecasting by the Ministry of Finance. It is sometimes unavoidable to have such disparities, your committee strongly believes that this should be in exceptional cases and unforeseen circumstances which cannot be foreseen at the time of budgeting," he said.
Beene urged the finance minister Ng'andu Magande to set ceilings for spending agencies during the budgeting process.
He said it was sad that because of the inconsistencies in the legal framework, supplementary expenditure occurred before Parliament's approval.
"This undermines democratic accountability and Parliament's role in the budget process. The supplementary budget may be perceived to be a method of financing activities over and above what Parliament had approved, thereby derogating from the power of Parliament to deliberate and approve all public expenditure," he said.
Beene also said most controlling officers did not have the knowledge to understand and appreciate the provisions in the constitution as well as financial regulations.
"As long as the controlling officers are not conversant with the regulatory framework, the management of public finance is seriously compromised," said Beene.
And Magande said the Bill was intended to account for supplementary expenditure of monies appropriated for the services of the Republic as provided for under Article 117 (4) (b) of the Constitution of Zambia.
The Bill then went through the second reading and was expected to pass through the committee stage yesterday.
Labels: BUDGET, BUDGET OVERRUNS, GODFREY BEENE
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‘Dispatch officers to Angola-Zambia border’
By Lambwe Kachali
Tuesday June 24, 2008 [04:00]
THE parliamentary committee on estimates has called on the government to immediately dispatch officers to Zambia's border with Angola in Shang'ombo district, which is currently manned by one immigration officer. In an interview, committee chairperson Godfrey Beene said among all the borders the committee visited, Shang'ombo border post was the most porous.
Beene, who is currently leading the parliamentary committee that is touring Zambia's border posts, said it was extremely sad that the country was losing a lot of revenue on Shang'ombo border post due to lack of manpower.
He said the situation at the Zambia-Angola border in Shang'ombo left much to be desired.
"So far, we have visited Mwami border, Chanida border between Mozambique and Zambia, Victoria Falls border between Zambia and Zimbabwe, and Kazungula border between Zambia and Namibia. All of them are porous but Shang'ombo border post is the worst as it is manned by only one immigration officer. This officer does the patrolling and banking of money collected. He has completely lost touch because he has no transport," Beene said.
He said whenever that immigration officer went to deposit money at the bank in Senanga District, the border had to be closed. Beene further said there was no security at the post where the collected revenue could be kept.
He said since January this year, Shang'ombo border post had been manned by one immigration officer, a situation he described as uncalled for and embarrassing.
"This border could be a threat to national security. Also, a lot of money is being lost.
So far this officer is only able to collect US$300 per month, and when he collects this money, there is no security because he keeps it in his own house or in the drawers at his office, which is very dangerous. Many people, who are going in and out of Zambia do not use the crossing point," Beene said.
"The officer is completely stressed as he has no transport. He has to bank the money using hired transport in Senanga, almost 220 kilometres from Shang'ombo and the road is bad. It is an extremely serious situation which needs immediate attention by government and there should be no excuse."
Beene also appealed to Zambia Revenue Authority (ZRA) to send officers to the area if the country was to increase its revenue base.
Labels: BORDERS, GODFREY BEENE, SECURITY
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Tax: Mines counter-propose
By KASUBA MULENGA and ANGELA CHISHIMBA
MINING companies yesterday submitted their counter-proposal on the new tax regime in which they agreed on the three per cent mineral royalty but
objected to the 25 per cent windfall tax in preference to 12.5 per cent. But Secretary to the Treasury, Evans Chibiliti, said Government would look at the mines’ proposal but would go ahead to enact all the proposed bills on tax. And Government yesterday presented the Mines and Minerals Development Bill to revise the law relating to mining and processing of minerals.
Submitting the counter-proposal to the parliamentary expanded committee on estimates and revenue, Chamber of Mines of Zambia general manager, Frederick Bantubonse, said the mines would only accept the introduction of either the windfall tax or variable profit tax and not both.
But Mr Chibiliti, who was accompanied by Ministry of Finance and National Planning permanent secretary for budget affairs, Emmanuel Ngulube, said cabinet had already directed him to start implementing new tax measures starting on April 1 this year.
He said the decision to come up with a new mining tax regime, was made by Cabinet and that neither he nor the Minister of Finance and National Planning, Ng’andu Magande, had the mandate to change anything.
“The mines should have faith and confidence in us because we have worked with them for a long time. We are not out there to destroy them but we mean well,” Mr Chibiliti said.
Mr Chibiliti said Government was aware that the mines had hired consultants who were making tax calculations for them and urged the mines to consider engaging their own accountants because they understood their operations well.
And when committee chairperson, Godfrey Beene, asked him about Government’s stance on the possible litigation the mines might take, Mr Chibiliti said Attorney-General, Mumba Malila, was ready to defend the tax regime in court.
“The interests of the people override the fear for litigation,” Mr Chibiliti said.
Earlier, Mr Bantubonse said although the mines agreed on the three per cent royalty, they, however, wanted it to be graduating between one and three per cent.
He told the committee that the chamber was against the proposed 30 per cent corporate income tax but wanted the current 25 per cent to continue.
And the mining industry being capital intensive, the chamber was against any changes to the capital allowance structure and recommended a continued reduction of 100 per cent of the capital expenditure during the year of incurrence to maintain viability of investments and companies’ ability to fund the same.
The chamber also objected to the proposal that withholding tax should be levied as indicated in the Customs and Excise Amendment Bill of 2008.
Mr Bantubonse said the levies should be deferred until sufficient smelting and refining capacity was successfully commissioned within Zambia that could process the entire quantities of concentrates, reverts, copper, mattes, unrefined copper, copper waste and scrap.
When Patriotic From member of Parliament for Lusaka Central, Dr Guy Scott, asked why the chamber had made a counter proposal late, Chamber of Mines president, Passmore Hamukoma, said they did not have enough time to meet all their members.
Mr Hamukoma said the proposals submitted to the committee did not reflect all mine owners’ views because some of them could not agree with them.
And REBECCA CHILESHE reports that Government will not officially inform mining companies that there will be no re-negotiation on the proposed tax regime but will compel them to pay in accordance with the new law.
Mr Magande, said this in Parliament on Thursday when he was winding up debate on the budget allocation for his ministry.
He said when the Mines and Minerals (Amendment) Bill of 2008 is passed, Government would, apart from compelling the mine owners to pay the new tax, also be able to track the accounts and other monies being made by the mining companies.
Mr Magande was answering a question from Mufulira MP Marjory Masiye (PF) who wanted to know whether Government had written to the mining companies informing them that it would not re-negotiate the proposed taxes.
“There is no need for us to put it in writing that there is no room for re-negotiations with these mining companies. We do not have to remind any tax-payer to pay their taxes because they are supposed to abide by the law,” he said.
Meanwhile, Minister of Justice, George Kunda presented presented the Mines and Minerals Development Bill to revise the law relating to mining and processing of minerals.
The 2008 amendment bill would repeal and replace the Mines and Minerals Act of 1995.
The bill would be tabled in Parliament for second reading next week.
And Government also presented an excess expenditure Appropriation Bill to approve a supplementary budget amounting to K83, 341, 135, 177 which was required for services during the financial year ending 2005.
Mr Magande presented the bill.
The Speaker of the National Assembly, Amusaa Mwanawasa, referred the bill to the committee on estimates.
Labels: EVANS CHIBILITI, FREDERICK BANTUBONSE, GODFREY BEENE, MAGANDE, WINDFALL TAX
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‘No turning back on taxes’
By JERRY MUNTHALI
PRESIDENT Mwanawasa says the interests of Zambians will remain paramount in the dispute mining companies have raised over the revised mining tax regime because citizens are merely asking for a fair share of their own wealth. Dr Mwanawasa said this yesterday at Lusaka International Airport on his arrival from Madagascar. Dr Mwanawasa was concerned that the mining companies were criticising Government for asking for a fair share of the country’s resources when the people who voted Government into power have welcomed the new taxes.
“At the beginning of my administration, I said where there is conflict between the people of Zambia and something else, the interests of Zambians will be paramount,” President Mwanawasa said. “I am unable to understand how they can criticise us when we are asking for a fair share of our resources.”
The President said his was a listening Government and he was, therefore, inviting the mining companies to meet the Minister of Finance and National Planning, Ng’andu Magande, and Minister of Mines and Minerals Development, Kalombo Mwansa, to discuss the matter.
“Mining companies should be prepared to show that Zambia’s rate of taxation was higher than the other countries in the world,” he said.
“We are a listening Government. Instead of shouting on the hill, I invite them to see the Minister of Finance and the Minister of Mines. Let them come prepared; let them show that our rate of taxation is higher. Some countries have taxation as high as 51 per cent, 47 per cent, while we are at 31 per cent.”
The President was concerned that the mining companies were using Zambians to complain on their behalf when they were reluctant to give them jobs, claiming they were incapable.
“When we say give jobs to Zambians, they say they are incapable; when they have to fight battles, they use Zambians to fight the lot.
They might be happy now with the salaries they are getting, what of the majority Zambians? Is it wrong for Zambians to ask for more so that we can improve the living conditions for all Zambians?” he asked.
Meanwhile, KASUBA MULENGA reports that a parliamentary watchdog committee has urged Government to relentlessly pursue the new mining tax regime so that Zambians benefit.
Presenting the final report on the 2008 estimates of revenue and expenditure, chairperson of the expanded committee on estimates, Godfrey Beene, told the House that the equitable sharing of benefits between mining companies and Zambians was an immediate imperative.
“In this vein, your committee wishes to strongly urge the House to support the new legislation that will provide for the new mining tax regime,” he said.
Mr Beene, who is Itezhi Tezhi member of Parliament, said there should be a clear and transparent mechanism for the utilisation of funds that will be raised from the new tax measures.
He said Parliament, as the people’s representative, should play a prominent role in decision-making as regards the usage of the resources.
Mr Beene told the House that several stakeholders who appeared before his committee supported the new mining tax regime on grounds that it will benefit many Zambians.
And Mr Beene said since the Central Statistical Office indicated that the basic food basket costs were between K700,000 and K1.5 million, the tax exemption threshold should be raised to at least K700,000 from the proposed K600,000.
The committee also recommended that Government should look into the high cost of doing business in the country because this entailed that Zambian products were expensive, yet not competitive.
Some stakeholders that appeared before the committee said it was a costly venture to doing business in Zambia mainly as a result of the high cost of finance, fuel and poor infrastructure.
Mr Beene said his committee was concerned about the small number of citizens contributing to national revenues. It, therefore, recommended a widened tax base.
The committee also recommended that due to the continued energy problems the country was facing, Government should find alternative sources of the resource, such as coal.
Stakeholders were also concerned about the reduction in the budgetary allocation to the agricultural sector from 8.8 per cent last year to 5.8 per cent this financial year.
Mr Beene said Government should increase the budgetary allocation to the important sector, especially under the fertiliser support programme.
And Minister of Finance and National Planning, Ng’andu Magande, said the ministry appeared before the committee three times so that issues raised in the budget could be clearly explained. Mr Magande appealed to the House to support this year’s budget.
He said Government’s objective was to continue providing tax relief although it could only do this systematically as the economy improved.
Labels: 2008 BUDGET, GODFREY BEENE, MWANAWASA, WINDFALL TAX
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Parliamentary select committee backs new mineral taxes
By Staff Reporters
Thursday February 14, 2008 [03:00]
THE Parliamentary Select Committee appointed to consider the 2008 budget has observed that the apprehension by some mining companies over the new mineral tax regime is unjustified and unreasonable.
And
United Nations resident coordinator Aeneas Chuma has said
mining companies should recognise that the government had a sovereign right to raise taxes to mobilise resources for national development.
The select committee which was chaired by Itezhi-tezhi member of parliament Godfrey Beene observed in its final report that fears by some mining companies that the new fiscal regime would require operators that were not yet profitable to pay taxes were unfounded.
“No company can be required to pay tax if it is not making profit,” the report read in part. “In the light of the foregoing, your committee strongly urges the government to relentlessly pursue the matter until the Zambian people get what is rightfully theirs from their natural resources.”
The report recommended that since circumstances had changed after the government’s entering into the current development agreements with various mining companies, the legislative route was the right way to go to provide for matters of taxation.
“The statement that the new tax regime proposes an effective tax rate of 79 per cent is also misleading. In fact, your Committee understands and agrees with the government that the effective tax rate will be around 47 per cent,” the continued.
“Noting that the exploitation of the country’s mineral resources should primarily benefit Zambians, which has not been the case in the past, we strongly support the proposed new fiscal regime in the sector as it is in the interest of the country.”
The committee members urged their fellow parliamentarians to support the legislation that would provide for the new mining tax regime.
The committee also welcomed the proposed introduction of 15 per cent tax on exports of copper concentrates, saying the measure would add value to copper exports and generate employment.
Commenting on the standoff between government and the mining companies over the new mining taxes, Chuma said the UN in the country was of the view that the government had done enough research and that there was enough room for the government to revise upwards the mineral taxes.
“The government has the sovereign responsibility to raise and mobilise resources aimed at helping it plan the development of this country and make investment coming in the country better, necessary to uplifting the welfare of the people,” Chuma said.
“And a lot of partners feel that the government has done enough research to establish that there is enough space for the government to collect a fair amount of revenue not just from the mining sector but also all sectors including the citizens of the country… and that is its legitimate function of the government.”
Asked to comment on claims by mining companies that new tax regime would harm further investments in the sector as it would result in reduction on return for mining companies, Chuma said the new taxes were still attractive and competitive.
“We feel that there is still an opportunity for the mining sector to realise a reasonable rate of return on their investment even after the new fiscal regime and also enough space for the government to get fair amount of revenue from the (mining) sector.” said Chuma.
And contributing to the motion of supply in Parliament on Tuesday, Chilubi member of parliament Obius Chisala said it was extremely embarrassing that some mining companies were resisting the proposed tax regime. He said Zambia should stand firm on the proposed tax regime.
“When the bill is brought in Parliament on the mining taxes we should pass it,” said Chisala. “Enough is enough. If these mining companies are not ready to pay the taxes, they should go back to their countries and leave our copper.”
Meanwhile, British High Commissioner to Zambian Alistair Harrison described the decision by the government to increase tax in the mining sector as “a noble move.” He said the British government fully supported the move especially that it would enhance the government’s efforts in alleviating poverty.
“We support the government in its quest to get a fairer deal out of the mines. These are the resources meant to benefit the citizens,” High Commissioner Harrison said. “It is a good move the government has made and I think the position of the British government has been made clear.”
Labels: AENEAS CHUMA, GODFREY BEENE, OBIUS CHISALA, PSC, WINDFALL TAX
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Treasury officials sent packing
By Times Reporter
THE parliamentary estimates committee yesterday sent back the team led by acting Secretary to the Treasury James Mulungushi because they did not present satisfactory explanations on the new mining tax regime. Dr Mulungushi was in the company of Zambia Revenue Authority (ZRA) Commissioner General and other senior members of staff from the Ministry of Finance and National Planning.
Dr Mulungushi and his team were asked to prepare a fresh report that would satisfy the committee chaired by Itezhi Tezhi MP Godfrey Beene, and present it by tomorrow. Mr Beene described the report by Dr Mulungushi as unsatisfactory and ordered him to prepare a fresh one, which should be presented before the committee by tomorrow.
Mr Beene told Dr Mulungushi that the committee members were not satisfied because the report left out key details of the proposed windfall tax on copper mines.
Dr Mulungushi had also said that Government plans to open a special account at the Bank of Zambia (BoZ) to keep the excess revenue from the mines.
Dr Mulungushi further said that Government has set up a committee to plan on how the projected revenue of US$415 million would be raised under the new tax regime.
This prompted the committee to question why the projected revenue of US$415 million was not included in the national budget. The committee argued that it is only parliament that has the authority to approve any expenditure and not the executive.
“As a committee, we are looking at the legal position on new mining tax and the position on the setting aside of the excess revenue and why is this money not included in the budget. We are disappointed because you have failed to give us the legal position on these important matters,” Mr Beene said.
And appearing before the same committee Zesco managing director Rhodnie Sisala said the demand for electricity increased from 1,447 MW in 2006 to 1,605 MW in 2007 attributing it to the increased activities in mining, agriculture, commerce, tourism and others sectors.
Mr Sisala said that this year, the demand for electricity is expected to rise as more investment is anticipated in various sectors. He however assured the committee that the savings from Pay As You Earn and Value Added Tax (VAT) would be channeled into investment.
“The power deficit is likely to continue till December 2008 when most of the machines are expected to be back in service. This scenario will translate into load shedding on most retail customers.
“ This situation is expected to improve as upgrade generators are brought back into service from June 2008,” Mr Sisala said.
Labels: GODFREY BEENE, PARLIAMENTARY ESTIMATES COMMITTEE, WINDFALL TAX, ZRA
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