Use Tax revenue on ‘poor’, opposition say

GOVERNMENT has been urged to translate the revenue from the new mining tax regime into tangible pro-poor policies that will directly lift millions of Zambians out of poverty.

And Mineworkers Union of Zambia (MUZ) president Joseph Chewe says mining firms on the Copperbelt should revamp their refinery plants to start adding value to minerals that are being exported in their raw form.

Regarding mining tax regime, Golden Progressive Party (GOP) president Jackson Silavwe said it was high time that Government showed decisive leadership by ensuring that mining companies abide by the new mining tax regime and help address various economic challenges unsettling the Zambian people.

”In the 2019 National Budget the Minister of Finance, Margaret Mwanakatwe announced a new mining tax regime which revised the mineral royalty tax rates and abolished the value added tax (VAT) refunds and this resonated very well with many Zambians and expressly supported the Government’s position.

“However the mining companies responded with threats of job losses and downsizing production. The threats from the mining companies drew sharp criticism from citizens, trade unions and many other stakeholders. It is abundantly clear that a new. Zambian capable of administering ‘ his’ own economic affairs is emerging.

He also urged Government to bring down the cost of living such as accommodation, transport, school fees and mealie meal among others. Mr Silavwe said the price of basic amenities and services remained out of reach for many Zambians.

Meanwhile, the MUZ president wondered why mining companies like Konkola Copper Mine (KCM) had abandoned its refinery plants.

He told the Daily Nation yes terday that government must press the mining firms to revamp their refineries so that the country stopped exporting the minerals in their raw form.

It was unacceptable for the country to continue exporting raw materials when it had capacity to add value to the minerals being exploited, he said.

Mr Chewe disclosed that many refineries on the Copperbelt were lying idle instead of being utilised for the country to earn more revenue by adding value to the minerals currently being exported in raw form.

He said government must prod and ensure that all the mining companies revamped their refinery plants so that they could start refining the minerals before they were exported.

“We have refinery plants like the one at KCM, another one in Kitwe’s Nkana area and in Mufulira which have been abandoned for a long time and it is high time government pressed the mines so that we start adding value to the materials,” Mr Chewe said.