Zambia earns peanuts from copper - EAZ
FROM over US $6 billion of minerals sold a year, the Zambian government hardly retains US $300 million in mineral royalty taxes, Economics Association of Zambia (EAZ) president Lubinda Haabazoka has revealed.
FROM over US $6 billion of minerals sold a year, the Zambian government hardly retains US $300 million in mineral royalty taxes, Economics Association of Zambia (EAZ) president Lubinda Haabazoka has revealed.
Dr. Haabazoka said as a result, European countries had continued developing at the expense of Zambians hence the need for the country to guard against its natural resources which have not fully benefited the citizens.
“How can you develop a country if US $6 billion leaves the country in raw materials and the only thing you get are mosquito nets in social corporate responsibility and US $300 million in mineral royalty? A tax that was tax deductible for the purpose of calculating corporate income tax? Copper prices above US $6000 yet the Copperbelt looks like all mines are on care and maintenance?
“The Zambian government newly announced tax regime is about to kick in. As usual, some mines are already talking about voluntary separation and lay-offs. There are hardly any mine suppliers benefiting from the mines. The most we hear are mosquito nets being donated by some mines,” Dr. Lubinda said.
And Dr. Haabazoka has charged that politics over the running of mines must comer to an end and that well-meaning citizens must stand with Government and stop arm-twisting tactics by some mining firms over taxes.
He said it was important to depoliticize the mines so that Zambians could benefit from the sector the same way they did during the ZCCM era.
He called UPON well-meaning Zambians to rally behind Government to ensure that workers were not sacrificed just to arm-twist Government adding that it was sad that the only mining business showing promising signs and benefiting Zambians in Kitwe was the Black Mountain which at least was enriching locals.
“To all Zambians, this is the only time that we can arm-twist the mines to comply with the new tax regime. It’s the only time because the political will is there. The Kitwe-Chingola and Kitwe-Ndola carriage ways were built at a great cost by Government. Guess whose traffic is contributing to the wear? The mines!
“How can mines threaten to lay off employees when a company independent of Government proposes to increase electricity tariffs?
All mine unions, all mine workers, all Copperbelt citizens and Zambians in particular should rally behind Government to ensure that we collect enough money so that in future, taxes for citizens can fall and infrastructure is developed like a town in Switzerland where most of the copper and cobalt money goes to,” he said.