EAZ dares mines

…show tax levels to ZRA, demands EAZ

MINING

companies should declare the level of taxes they are paying to the Zambia Revenue Authority (ZRA) in the same way they are disclosing Value Added Tax ( VAT) arrears owed to them, Economics Association of Zambia (EAZ) president, Lubinda Haabazoka has suggested.

The industry should provide information of how much they were contributing to enhancing foreign exchange liquidity in Zambia and how much taxes they were paying into ZRA.

Dr Haabazoka said he was shocked at the way the Zambia Chamber of Mines (ZCM) was freely disclosing how much was owed to the mining industry in VAT and yet reluctant to provide information on how much taxes they were paying.

“First of all ZCM and its members should give us some information of how much money they have made and where the proceeds of the sale of the minerals go to and in which commercial banks they bank in.

“They should also tell us how it has contributed to enhancing forex liquidity in the country and how much taxes they are paying into ZRA, not just claiming over a US$1 billion VAT refund when they can hardly declare profits,” he said in an interview.

Recently, ZCM in its latest report indicated that ZRA owed them over US$1 billion in unpaid VAT refunds.

Dr Haabazoka said EAZ was shocked with the negative sentiments issued from ZCM which had potential to harm investment.

He said the information ZCM was releasing painted a picture that Zambia was unable to receive investors and new investments which was contrary to the hospitality that the mining companies had been receiving from Zambians.

“As an association, we are very worried and shocked at the manner in which the mining companies have been issuing negative statements trying to paint a picture that Government is not solvent enough to meet VAT refunds.

“It is giving an impression that mining companies survive on VAT refunds. So we call upon the mining companies to respect Zambian citizens and the countries in which they operate and try to object a much more optimist picture,” Dr Haabazoka said.

Dr Haabazoka said mining companies should instead assist Government stabilise the economy amid the Covid-19 pandemic.

He said anchor business companies, especially mining, in countries that were dependent on the extractive industry were helping governments to ensure that the economies continued running.