Economic consultant Bob Sichinga has questioned the benefit the increase in copper production in the country is having on the lives of the Zambian people.
Mr. Sichinga has noted that if the correct mining tax regimes were implemented in the country, the high production of copper would have been benefiting Zambians.
He adds that economic development would have increased if the government re-looked at the tax regime in the mining sector.
Mr Sichinga says boasting that Zambia has attained economic development by the current government is false reading of the situation.
Mr. Sichinga in an interview with QFM says Zambia can attain a lot in terms of development if the country heeded to calls on the need to review the current tax regime for the mining sector.
QFM
Is this man an economist? He calls him self a consultant, i would never engage him for anything. Is it no simple to understand that increased copper production leads to increased revenue income to the copper mining companies hence an increase in e.g corporate tax paid to government.
We all agree that if you increase the tax rate yes more money will be collected. However, one need to take a balance. The current problem in Zambia is not the tax rate. The problem is the ability for government to collect tax. The government does not have the capacity and skills level to collect tax. What government need to do is build capacity to audit (not just financial) companies both technically and financially for an optimal collection of tax.
The fact is Zambia is the only country that does not charge for Windfall Tax. Being among one of the biggest copper producers in the world it is odd and insane to even consider that windfall tax will make Zambia less attractive to investors. We are losing $800,000,000 every year. But we all know that the bribes received by our politicians have made them handcapped. Please Vote for an alternative that will seek the ineterests of Zambians
MAXWELL MWALE IS ONE OF THOSE MINISTERS WE ARE COMPLAINING ABOUT DAILY
#1 Bob does not need to be an economist to state the above. All he has said is that with increased copper production ordinary zambians should have seen visible benefits if the Govt had put up a good tax regime. You have also compounded that the Govt has failed to collect the due taxes correctly which is a failure on the their part. As such Bob is correct to notice that, with the hype on high copper production and prices, the general public have not benefitted. is that not a caurse for concern?
Bob is just politiking on behalf of his new found ba pongoshi,sata.He thinks we dont know.
No.4 give me a few reasons why you think the current tax regime is not good. Do you actually know the tax regime? Give me your reasons why its different from the tax regime in Chile, Canada and Australia
What consultancy is Bob doing? The guy is ever on radio criticising everything.Political reject.
# 4 AMAYAMA.
who told u tht zambia is the only country tht does nt charge windfall tax??? and which countries are charging windfall tax??? dont bring rumours u hear on the streets to the blogg to jst mislead bloggers.get yo facts right.
The most appropriate guide on what mining tax regimes to apply, if it has not been done already by Govt, would simply be to study what other Cu mining Countries with similar arrangements have done, or apply. Then we would have a reference point on whether we are doing business, or are being done in. We do not need to re-invent the wheel. And we sure don’t want to do hunches in this matter.
But along with this subject, we still come back to the same inescapable questions : – one day Cu will run out, what then?? What is our Country’s long term vision in this sector? Are we going to export raw Cu till death do us part? How about secondary Cu industries within our Country beyond just Zamefa? At least if Cu ran out today, Zamefa would import Cu from Congo DR and continue to function. Are we..
Are we then going to cluster around Zamefa like a brazier in cold season? Ideally, this is what we should spend more time debating towards election time.
# 1, Bob has got a point. We need to increase our tax base by introducing windfall tax so that everyone in the country benefits. Production is high in the mining sector. The question is “who is supposed to benefit?. The Chinese, Indians or Zambians. Let the guys from ZRA know a bit of mining or teach Miners basic Auditing and employ them to run ZRA.
bob sichinga stands on his balls he has no spine. he trots from one radio station to another just talking against govt. bob is a failure in business, politics and work he is broke like panji and waza now thinks sata is his redeemer. bob go to hell
Afetr having worked as and engineer in the mines on the copperbelt for 10yrs. I understand fully, the current high copper prices are not benefiting the miners (the salary increament this yr has ranged from 12.5 – 0) in all copper mines. Now the salaries have been poor hence miners were expecting a reward as the prices this yr have been way above budgeted for selling price. Again the govt has lost out in collecting much more revenue than wat is being collected currently.
MR SICHINGA IS RIGHT. WE WANT WINDFALL TAX.
SATA AND PF WILL RE-INTRODUCE WINDFALL TAX AND COME UP WITH A GOOD TAX REGIME.
THATS WHY WE ARE CHANGING GOVT THIS YEAR.
DONT WASTE YOUR VOTE ON HH WHO INHERIT DEAD PEOPLE’S PARTIES eg NGONDO’S PARTY
VOTE SATA AND PF COME 2011.
Let us keep the debate basic so all can understand even the not so learned like me should understand. It is not that they do not know what needs to be done.
1. Creation of jobs is one way of empowering poeple, how can it be done in this case; Govt needs to increase inspection of the tax payments that is more people employeed; train more Zambians post the first degree to a level of compentency required to administer some of the tax regime being talked about by many above.
2. Yes, the taxation in Chile is very different from ours, it is pro employees and not employers like is the case in Zambia (YAYE is the major sourse of income .. this way you have more money in the pockets).
#8 Ka Eagle – Unfortunately LT does not allow any links to other websites otherwise I could have shown you the facts. To cut the story short, the following countries charge windfall tax: Chile, Australia, SA, Angloa, Newzealand, Botwana, Congo. Now tell me which countries that do not charge windfall tax
SOME OF YOU CHAPS DONT EVEN UNDERSTAND WHAT WINDFALL TAX IS ABOUT. YOU ARE ALL THIEVES YOU DONT PAY TAXES FOR YOUR TO MA LITTLE TEMBAS YOU RUN BANGWELE
bob sichinga, where has this brat been? Winangu will be injured
Mr. Bob just come out in the open that the reason why you have allowed yourself to be hired by the POST to do what you are doing is that you are looking for a job in the event that PF formed gov.
Apart from this we all know that Mr. Sata`s daughter is married to your own blood son otherwise you do not even believe in what you are preaching.Shame on these OLD politican who want to dies in gov without giving chance to the young ones.
#16 you are a lier.Australia plans to introduce the wfall tax in 2012. and bostwana has no wfall tax