Message Mar 2 Aoû 2011 12:26

Jump to Content Explain stance on mine tax, Simuusa tel

GOVERNMENT should clearly explain why Zambia is reluctant to push for increased benefits from mining companies through taxation and increased shareholding, says Wilbur Simuusa.

Commenting on Namibia’s plans to raise corporate tax in mining companies other than diamond producers in the next financial year, it was scandalous for President Banda’s government to remain adamant on calls to raise revenue from mining companies when other governments in the region push for increased benefits from their mining sector.

On Monday, the Namibian government said it plans to raise the tax on mines other than gem operations to 44 per cent from 37.5 per cent.

Diamond mines are taxed at a 55 per cent.

“This government has really failed the people. They are still adamant on increasing benefits from the mining companies. They are adamant for example on windfall tax when other countries in the region are moving that direction,” said Simuusa, a mining engineer.

“Countries like Namibia, South Africa and Zimbabwe have continued their push for increased benefits from the mining companies through taxation and increased shareholding but our government is adamant. They should explain why they are going in the opposite direction.”

Simuusa said while other countries were advocating increased stakes in foreign-owned mining companies, President Banda’s government was selling its “minority” shares in the name of attracting investment.

Recently, Zambia’s state-controlled mining company, Zambia Consolidated Copper Mines Investment Holdings Plc, agreed to sell its 2.28 per cent stake in Equinox Minerals Limited to Barrick Gold Corporation for more than US$160 million.

“All right thinking governments in the region are going in the correct direction, which is increasing government’s stake in the mining companies but our government is going in the other direction. To me it is scandalous and this will be a campaign issue,” he said.

Simuusa said Zambians should not allow the government to continue depriving them benefits from the mines.