`Tax evasion rampant in mines’

GOVERNMENT must be stiff on mining companies evading tax in the name of making loses because the country is losing a lot of revenue, a mining expert Mwimba Bwalya has said.

Mr Bwalya who is a mining engineer said in an interview yesterday, the country was endowed with rich natural resources but yet it had remained poor because not enough was realized from the mines.

“According to Mines and Mineral Development Act number 18 of 2018 which was effected on January 1 2019, mineral royalty rates for tax purposes are on base metals 5 percent, on energy industrial minerals 5 percent, on gemstones 6 percent, on precious metals 5 percent and on copper 5.5 percent, 6.5 percent, 7.5 percent, 8.5 percent or 10 percent and on cobalt or vanadium 8 percent but we don’t get want the country is supposed to get,” he said.

These taxes are non- deducted but the country does not get the much needed revenue from these foreign investors because of using the pretext that they were making loses, he said.

Mr Bwalya said Government must be stiff on these mining companies so that the country can earn much needed revenue.

He said the mining companies were making a lot of profit but they had continued to evade taxes.

“These foreign mining companies exploiting our mineral resources are making profit and it is not in dispute that the tax avoidance or tax evasion is not uncommon amongst foreign investors,” he said.

It was clear, Mr Bwalya said, foreign investors were the mega beneficiaries of the minerals while Zambia was getting a paltry revenue.

Mr Bwalya said Government must ensure that it collected necessary revenue through tax from all mining companies in order to help improve the dwindling economy.