SI 89 was a scheme to evade tax - Banda
By Moses Kuwema
Mon 04 Nov. 2013, 14:00 CAT
FORMER mines deputy minister Ronald Banda says the withdrawn Statutory Instrument number 89 that allowed exports of copper ores and concentrates tax-free was a scheme of trying to evade tax.
In an interview, Banda, who is also former Zambia Revenue Authority deputy commissioner technical, said Statutory Instrument No 89 was an additional tax incentive that reduced the tax liability of First Quantum Minerals and other beneficiaries.
He said SI 89 was an unnecessary relief that should not have been granted in the first place.
"It was a scheme of trying to evade tax. There was no need for SI 89. I don't know why it was even considered. The finance minister cannot be misled. When you make an SI, it follows certain procedure, so it would be strange for the minister to just sign a document without understanding its implications," Banda said.
He said the Ministry of Justice had legal draftsmen who ensure that SIs conform to certain standards.
"Tax in the mining industry and other businesses is treated differently because mines are wasting assets. They involve costly infrastructure and as a result, the mining industry has historically been treated differently in terms of tax compared to other industries. This is so in relation to capital expenditure. Because of this treatment, there are specific provisions contained in the income tax Act Cap 323 that deal with mining deductions," he said.
Banda said capital expenditure incurred on the construction of a smelter would normally be allowed as a deduction in ascertaining the gains or profits from the mining industry.
On Monday last week, President Michael Sata reversed SI 89, which finance minister Alexander Chikwanda signed on October 4.
SI 89, which was to be in force up to September 30, 2014, was to reverse the November 2011 decision of the PF government to impose a 10 per cent export levy on copper concentrates and ores to encourage value addition to copper exports and improve accountability in the vast mining sector.
SI 89 has since been replaced with SI 99, which has reinstated the 10 per cent export duty on copper concentrates and ores.
Labels: RONALD BANDA, STATUTORY INSTRUMENT 89, TAX EVASION
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Ronald Banda, Charles Banda join Sata's east campaign
By Mwala Kalaluka and Jack Zimba
Thursday October 09, 2008 [04:04]
Former community development deputy minister Ronald Banda yesterday said he will support Michael Sata in the October 30 presidential election because he does not subscribe to primitive politics of supporting people on tribal lines.
And opposition Forum for Democracy and Development (FDD) spokesperson Charles Banda yesterday announced that he will back Patriotic Front president Michael Sata in the October 30 presidential election.
Ronald Banda, who is now an active member of the PF, said in an interview that there was no way he could support the MMD following what he described as corrupt activities in the ruling party. He also said he could not endorse the candidature of the MMD’s Rupiah Banda just because they both hail from the same province.
“I do not believe in primitive tribal politics,” Banda said. “We have intermarried, for example my wife is a Lozi.”
Banda claimed that the PF, which he joined at the beginning of this year, had launched a vigorous campaign in some parts of Eastern Province.
“I have just come from Petauke. MMD at the moment has got camps and in those camps, they are giving K700, 000, chitenge materials, saladi (cooking oil) to people and I have told the people that follow me that just chew the foodstuffs that are given to you. The MMD are desperate,” he said.
Banda said the PF’s campaign was fairing very well, especially in Petauke, Kapoche and Msanzala constituencies.
“I can’t comment on the other areas fairly but it is like a revolution. When we go again, we are going to touch those places we have not been to,” he said.
And Charles Banda said he decided to support Sata because he was a member of the opposition and that there was no way he could back the MMD candidate.
“I am campaigning for PF and Mr Sata in my constituency, which is Kapoche and Petauke district and Eastern Province, as a province where I come from,” Charles said. “We have nothing in common with the MMD right now. Mr Rupiah Banda comes from the Eastern Province, it is true. People are saying koma wa kwasu, meaning someone who comes from my place of origin…It is not that I should support the MMD simply because Mr Rupiah Banda comes from Eastern Province.”
Charles explained that he is going to campaign for the PF because the ideals that the FDD stands for are similar to those of the Sata-led opposition party.
Charles said people saying that Rupiah Banda currently enjoyed a 100 per cent support from Eastern Province were cheating.
“That 100 per cent is a dream. There are those of us who do not agree with him and we are going to tell our people to follow the ideals that we believe in and we can only find them in the opposition,” Charles said. “The way the MMD is approaching politics in this country is one thing that we do not agree with. There is a lot of corruption, intimidation and bribery. The MMD are diverting from the law. They say they are a government of laws and not of men but much of the time we have noticed that the MMD is a government of men and not of the law.”
Charles charged that corruption within MMD had been enhanced after president Mwanawasa’s death.
“There is no one who is following the law. Look at what is happening. There are cases of bribery. People are bribing political parties to endorse the candidature of Rupiah Banda. I do not think I want to be part of that,” he said.
Charles said although there could be other people within FDD with contrary views, the majority fully agreed with him .
Meanwhile, former president Frederick Chiluba yesterday said he has not yet decided on which candidate he will support in the October 30 presidential poll.
Asked on whether he still supported Sata, whose candidature he endorsed in the 2006 elections, Chiluba said: “I’m a man that will never shrink from my position because I base everything on principle; I’m dictated by what I believe in, I’m dictated by what I see in the leadership and I haven’t made my position here; yet I’m sure I will, you can be assured I will.”
Chiluba was speaking after the funeral service of the late bishop Samson Phiri, who was national overseer of the Pentecostal Holiness Church, at Lusaka’s Edwin Emboela Stadium yesterday.
Bishop Phiri died last Sunday after suffering a stroke and was buried yesterday.
Labels: CHARLES BANDA, MMD, RONALD BANDA, SATA
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