THE mining sector in Zambia has failed to contribute effectively to the economical development of the nation, Alliance for Democracy and Development [ADD] president Charles Milupi has charged.
Speaking in an interview on Tuesday, Milupi said out of 2.7 billion US$ dollars the mining sector produced last year only 77 million US$ dollars representing 2 percent was contributed to the national treasurery a situation he said Zambia would continue to sink if the windfall tax was not reintroduced by those in government.
He said the failure by the current government to continue with the change late president Levy Mwanawasa introduced in the mining sector of windfall tax has affected the growth of the economy in relation to revenue collection from the mining sector.
Milupi said it was wrong for President Rupiah Banda’s government to repeal the windfall tax law which allowed Zambia to raise money from its minerals, adding that the removal has created unnecessary pressure on the back of government.
He said it was wrong and saddening despite people talking and crying for the removal government had stubbornly used numbers in parliament to force for the removal of the windfall tax.
“For 2010 alone Zambia has lost an opportunity based on the projected production of copper based on the projected copper prices which is about 7500 US$ dollars per tonne. As a country we have lost an opportunity to earn over 600 million US$ dollar from copper, this money is more than all the monies donors can bring in, both local and external loans Zambia borrows for its management in various sectors of the economy. The removal of the windfall tax was done in a careless manner by the MMD government by the use of numbers in parliament, despite knowing that no investor would lose out in any form,” said Milupi.
He regretted that President Banda’s government had failed completely to understand that issues of windfall tax were not meant to disadvantage foreign investors but promote economical development and equal sharing of the national resources among all players.Milupi said the issue of attracting investors by removing the windfall tax would not help the country but keep on putting more pressure on the government’s overdependence on donor community for its sustenance.
Very sad indeed. These Musokotwanes and Fundangas sure cannot come up with a thinkable way to collect more money from these investors finishing our orebodies
I think ADD is suffering from Attention Deficit Disorder.How do you explain the growth to over $ US2.5b in retained foreign exchange if we trully are only earning $ US 77m per year from our highest earning export commodity?
You have conviniently missed the point. Milupi is not talking about the reserves of the nation. He is talking about what we are losing as a nation out of not effecting the windfall taes.
Ba Enka Rsha, you must be suffering from a serious case of MMD blind loyalty, Milupi is not talking about national reserves which were accumulated from the same windfall tax, he’s talking about YOUR COUNTRY’S largest economic sector contributing only 2%, i.e $77 million when they could have brought in $600 million and maybe even increased our reserves to $3 billion?? i guess we as Zambians are easily pleased and settle for mediocrity as a standard EISH MAN whats wrong with people
First Quantum is contributing a lot to our national cake, why can’t other mines do likewise?
Viva HHHHH, zambia forward!
point of correction.
Copper prices have been above 9000US Dollars/tonne for over six months now.todays price 9126Usd/tonne.so u can now proceed with calculating wat Zambia has LOST
Iwe Milupi stop makingnoise. You should have joined Sata if your real agenda is to change government. Only pa Zed we have so many learned fools. Eg. Magande , Milupi, Chipimo , Miyanda,Nawakwi , HH and the rest noise makers !
MBUZI YOU ARE A MAN.LETS RALLY BEHIND SATA.
Why are mines targeted my POLITICIANS in every country.
Mining industry has now become like running a water company, there is TOOOOO much political interference from Politician from all angles.
Milupi was one of the senior managers in the time of ZCCM, The guy spent most of his time in Europe learning,, I am told he has 4 degrees, = 20 years of learning. using ZCCM money.
I only wonder when he actually worked cos i ma sure he was always on study leave. This is one of the reasons ZCCM stared doing badly with people like milupi running the mines and throwing away mineral in huge damps of slug in Kitwe and other mining companies, which the Chinese have started reprocessing and avery body wants to be part of the spoil
Dear betters, If you want to be objective, please please please re-check your ‘facts’ before you blog. You are sadly wrong on ALL the points you have raised. Clearly, you did not work for ZCCM.
@7 betters:
You are so right!! Milupi and his ilk were at the helm and ruined ZCCM. How can his experience not show in his utterances? How come there is no difference in the quality of his analysis from SATAn’s? What did he ever learn from being a senior manager at ZCCM?! Clearly nothing.
Guys MAKE not mistake about it, ZCCM would have been profitable but we were secretly living under communism, all the revenue generated was siphoned out and funded both the government and UNIP instead of going back into infrastructure and capital development. Or do you think that we were at one time the worlds third largest copper producer by change??!!
Interestng, interesting. Only two percent fromthe total revenue Interesting. Only in Zambia. Only in Zambia that such shit, such comedy happens. The reason MMD should be shown the door. Thank you RB for causing the MMD to lose.
Viva Milupi .Cuuuuu Cuuuuuuuuuuuuuuu
Rupiah will be shot dead along with tekele banda while campaigning in luapala.take this as a warning
This is like the old Kings who would sell their people as slaves for wine and mirrors. It’s clear MMD are only interested in their mouths.
# 7. Lets take out 8 years for core courses . 12 years on Mine grants is still alot. But what makes sad reading is that people like Milupi, are so short sighted. It is a fact he knows he won’t win but all he wants today is to start preaching what is right. Same as Miyanda. If these fools have the country at heart they would have joined the most realistic political party to form next government and put thier brains or proposals at work. Right now this is all nonosense.
Ba milupi balepula ubwali kumyesu ku kitwe!out of greed this man should have joined another party instead of increasing the numbers!
May it be reintroduced!
Dear betters, If you want to be objective, please please please re-check your ‘facts’ before you blog. You are sadly wrong on ALL the points you have raised. Clearly, you did not work for ZCCM, and you are not in tune with advancements in technology regarding mineral processing and refining over the years.
Spoken like a true miner, mwe beni Betters is talking out of ignorance, MAKE no mistake ZCCM was profitable, it was UNIP and it’s government that made it bankrupt, you can not bankroll the government and its party and leave nothing for capital development, ZCCM was once legendary, ask the guys in Chile and South Africa.
meditate on these quotations
1. “Foreign mine owners have corrupted Rupiah’s regime” former finance Levy’s minister Magande said
2. “The government is like an estate agent and if you have an estate agent who cannot collect rent, what do you do with them? You fire them !” Dr Mpande said
Ba Milupi please, tax should be paid on profits and not turnover! You have completely ignored the costs that were incurred to earn the US$ 2.5 billion you are talking about. Mwanawasa’s windfall tax was flawed.There are also capital allowances that are given for equipent purchases. There is more to it than meets the eye. We should be suggesting a tax on super normal profits, like what is done in the banking sector. Based on this, I have decided to deny Mr. Milupi my vote because he doesn’t seem to know what he is talking about.
That why HH says he knows where the money is.
#16 @ mwamba
Rupiah too…
in his pockets and those of foreign shareholders…
Why do we do this shit to ourselves. We tax our people heavily yet we let these guys eat all the ore money by themselves. They even pay themselves salaries which are way above compared to our locals. We need to seriously consider what we are doing today as it will have a great impact on our future. Mines need to pay equitable taxes. Furthermore, we need miners to be paid (handsomely) similar to what miners get paid in Australia or wherever they come from. Shell in Nigeria despite all the bad publicity pays Nigerian workers the same as those in Netherlands or any place where they have operations. Lets look after our nation and its people as once these resources run out, these so called investors will be the first to leave us (and very hungry too)
Reintroduction of windfall tax is the way to go with PF govt next month. RB’s govt would rather have mine companies sponsor mmd’s campaign that pay to national coffers so that every body benefits. The campaign is not a productive sector. Did mwadya mweka daddy party sympathisers still hoping that mmd will win the polls?
20 Days.Shiiiiiiiiiiii
Milupi there is still time just get pabwatoooooooooooooo coz no one pays attention to whatever you say good or baaaaaaaddddd.
even without windfall taxes, can ZRA show beyond any reasonable doubt that all taxes due are collected? The whole setup is a fluke.
Let us try a different administration
Let common sense prevail, these natural resources don’t even belong to us they belong to our grand children and great grand children…even the numbers he has given there are lower, we are being reap off big-time and before those buffoon politicians relies this they so called investors will be gone and we will be left with empty pits in the ground.
British companies drilling in the north sea of Scotland are taxed heavily and contribute substantially to the development of the local economy all year round not just at election time…you don’t see them packing up. Introduce taxes lets see who will pack up because they are so many takers out there.
You import a motor vehicle into the country and you will see how very efficient our Tax authorities are, they will charge up to the last ngwee…..you’ll feel the pinch and then you’ll remember this article …yet these selfsame chaps let foreign investors go scot free literally without paying tax for something that belongs to you.
Senior citizen say something with your fellow professional bloggers like mmd chiefbootlicker.
Is Milupi telling the truth. How can we get something out of our diminishing resources.
Government of thieves, only interested in their stomachs, cutting deals with plunderers in the name of mine owners with the sole aim of looting national resources for their own benefit. No wonder this government removed the corruption clause so they can maximize on reaping and raping our resources. Shame on this govt.
#2 ENKA RASHA and the REST: – As Zambia you DON’T OWN any of the mining companies anymore. When mining companies announce billions of dollars in exports that money is not coming to YOU, it is what the companies are making and most of it goes back to their countries of origin as paid dividends. So when Milupi us saying $2.7billion, that money is what the mining companies are making, NOT WHAT Zambia is making. For Zambia to make any money it relies on tax, and that is the $77 Million he is talking about. Now what that means is that out of the $2.7Billion made by companies, our government only managed to claw back $77million, which is 2% of that total earned by the companies. You chaps should go back to school. You used to run away from Maths classes, you see now!!! You can’t even add!
we all knw that already you muppet!!!
Thank you Milupi, atleast this time the observation of windal fall taxes on mines did not come from president sata who earlier on talked about this taxes and was critisized by corrupt MMD folks. come 20th september MMD should pack and go coz they dont have the heart for mother zambia.
This farmboy RB only discovered that there is something called Corporate Social Responsible CSR when he started campaigning for next month’s elections…just imagine just for a minute if our Zambian government negotiators of these mine contracts ingrained CSR in their negotiations with these foreign investors; forced them to invest in the local community or trusts for International scholarships etc
Milupi should tell us what his company CEC (in which he still has shares) is paying in taxes. In fact they now want to invest in power generation in Nigeria instead of re-investing their profits in Zambia!! Milupi should have learnt while he was COO of CEC that Turnover is not Profit. Also if a company/taxpayer has tax losses carried forward from previous years, it will not pay taxes on current taxable profits until when all those tax losses have been recovered. Has he attempted to make this reconciliation? This is the way things work in most parts of the world. Milupi should try and use his brains, if the nonsense in parliament has not addled them already.
Who is interested in what Milupi has we are interested in revenue collection from our resources….give me an example where things work like this apart from Zambia and DRC???
Milupi a unless brailnless i.diot who does not even know the difference between Turnover and net profit. Am sure he does not even know how tax is calculated.
Milupi is a brailnless i.diot who does not even know the difference between Turnover and net profit. Am sure he does not even know how tax is calculated.
Its very very rich of you to use the word brainless and then to add salt to injury to use “The Engineer (Australia)” you are an utter disgrace to Engineers…just go back to your day job waiting at tables!!
Charles Milupi is talking about “WINDFALL TAX” not standard tax on profits. Windfall tax means that as government you agree with mining companies on the maximum price to which you expect copper to hit the market over a period of time and you use that projection to work out the standard tax on expected profits based on that projected copper porice. Now what happens is that you also include in your agreement that if the market copper price exceeds that projected price you directly tax that REVENUE because that excess rise in price of copper is a ‘bonus’ to mining companies which is reaching them without them having to increase their projected costs; windfall tax means that govt and mining companies fairly share the ‘windfall’ income from the market. So who is the i.diot now???
ALL MINES MUST TO THE COMMUNITY FQM DOES.
this movement for mad dogs, is pack of wild dogs trying to sniff out our last resources with a coterie of their paid bloggers, thieves with no agenda for the country but out to defend the day light robbery . Milupi is right on the issue of taxes.
@32 and @34 how can you even raise such issues, trying to defend the indefensibly call the guy what you want but he has raised thought provoking issues…whether its $2billion turnover, the tax collected is paltry, we should be collecting minmum $500m…do you think investors would come to Zambia if they were making no profit (think; use that organ in between your ears)
Go to Glencore’s website and see what your copper is contributing…..
At 34. I thot you are most stupid fellow here. Advance reasons in yo criticism.
#33 & #34 The Engineer: Please educate us on the matter if you have any brains yourself. I know that the taxation of mining companies in Zambia is one issue that has been debated extensively by different stakeholders over the years.
At 34. Offer yo confou not insults you empty tin.
Shame on you MMD! Damn you!
Charles Milupi is talking about “WINDFALL TAX” not the usual standard tax on profits. Windfall tax means that as government you agree with mining companies on the maximum price to which you expect copper to rise on the market over a period of time and you use that projected price to work out the standard tax on expected profits. What happens is that you also include in your agreement that if the future copper price exceeds that projected price then you directly tax that REVENUE because that excess rise in price is a ‘bonus’ to mining companies which is reaching them without them having to increase their projected operational costs – they are already making profits anyway!! Windfall tax means that govt and mining companies fairly share the ‘windfall’ income from the market.
#41 Kunta-Kinte thanks because I realise there are so many people who ague against Windfall tax without even understanding how its taxed and end up believing anything that is said. Its actually shameful that Dr. Musokotwane has taken advantage of people’s ignorance to mislead them into believing that having windfall tax would be harmful for the nation.
Charles Milupi hits the nail on the head. This man is brilliant. I hope MMD can put country first and reintroduce windfall tax. 2% is a drop in an ocean for a country that depends on copper as it’s main export. Mwanwasa was not a fool to introduce it to the country. He thought about Zambia’s weelfare in the long term. Copper flactuates and the only transparent and accountable tax regime that can help Zambia benefit from it’s revenue is Windfall tax. Suprisingly PF doesn’t even mention windfall tax these days?
Let us all be objective and admit Charles Milupi hits the nail on the head on the mining tax issue. I hope MMD can put country first and reintroduce windfall tax. 2% is a drop in an ocean for a country that depends on copper as it’s main export. Mwanwasa was not a fool to introduce it to the country. He thought about Zambia’s welfare in the long term. All Zambian leaders should take into consideration copper flactuates. The only transparent and accountable tax regime that can help Zambia benefit from it’s revenue in the long term is Windfall tax. Suprisingly PF doesn’t even mention windfall tax these days?
Dear Bloggers, This man by the name of Milupi does not seem to know how Government runs. Zambia has presently got one of the blotted civil service , I mean people who are not into money production but rendering valuable service. If Milupi thinks that all the money generated by the mines should have gone into reserves , then he has gotten it wrong. GRZ has been constructing schools, RHC etc out of this money. Is this the Milupi who used to sit on parliamentary accounts committee? If so then I doubt how he managed to reason on that important portfolio.
No 39
Sure i can educate you. When you build a mine you spend huge amount of capex which is recovered from revenue mostly over a period of 10 years. Whats then happens is that tax is calculated as follows
Revenue – Cost – Overhead – depreciation – amortization = Net Profit (Profit before tax)
You then calculate the Tax payable. A number of things will affect the tax payable e.g
Commodity price, high production costs and indeed amortization since you have to recover the capital used to build the mine. hence my point that you can not calculate tax on Revenue. In this case you do not even know how much of the mine expenditure has been capitalised and hence will be amortized. Most mines will never pay tax in the first 5 years and thats worldwide not just Zambia. I say most not all.
Its therefore politically is good for a Mr Milupe to sand up and say 2% without putting the facts of the 2% on the table. The debt about Windfall tax is valid only on the basis that the mines can afford to pay the Windfall tax. To just stand up and look at revenue and assume that now lets introduce Windfall tax woulkd be shooting yourself in the foot. For example, in Australia the windfall tax only applies to Gold mines as other mines can not afford to pay the tax. Lets be objective with facts and not be mislead by people like Mr Milupe who is looking for a job. Ask him how much tax CEC pays a company which he his a shareholder
#45 you are wrong. You may build schools,hospitals and roads but if the revenue from copper is not increasing Zambia will end up in debt. You have to consider all these services can not be maintained without revenue. Copper prices are unpredictable, therefore, has to capitalised when prices are high. The only tax regime that is fair for the investors and Zambia is windfall tax. Putting copper revenue in the reserve if it is the only source of income for Zambia is also a wise move. Look at how the Botswana has used their diamond revenue to help their economy. 2% revenue from mines is disturbing if it accounts for 70% of the exports out of Zambia. There needs to be more transparency on the copper revenue tax regime presently adopted in zambia.
No 48 I agree on the transparency side of things. In my view we need to have a more educated and knowledgeable ZRA which understands how mineral tax works. Mineral taxation is a very complex subject. Mines can avoid taxation in many legal ways. This happens every where. Australia, Canada and South Africa. South Africa is a case where minerals are the biggest export but mining is not the biggest contributor to tax collection
#42 LUNDAZI DWELLER & #47 THE ENGINEER – The fact is that somebody got kickbacks from this and that the mining companies are too sophisticated for our Zambian tax negotiators. Why is it that immediately Mwanawasa died it was the first Levy policy to be gotten rid of? The reason is simple: Mwanawasa was a State Counsel, an astute lawyer who could not be intimidated about international business law, he was able to face these companies and challenge them. That level of sophistication is missing in RB’s govt. And THE ENGINEER – the reason why Australia has retained windfall tax on Gold is because it is the reserve mineral which everybody is buying each time stock markets tumble. Like copper, the price of Gold has never been this high since the 1970s. Australia is reaping! Zambia is losing!
No 50
You are wrong. The windfall tax in Australia is still under debt its just a proposal. The last prime minister lost his job for trying to introduce the Windfall Tax. For your information South Africa stated today that it will not introduce any Windfall Tax. Namibia stopped the introduction of Windfall tax last month after seeing the sense. Tanzania stopped it and settled for a royalty tax of 2% after also seeing the sense. The reality is that if you do the numbers no mining company can pay the Windfall tax and still be profitable.
At 34 Engineer (Austraria), It is unlike u to use such words to anyone as ur level of presenting issues inspires a lot of us. Look at the following arguments u have put forward,very well articulated and educative. Plse plse avoid falling in kaponya language u are beyond that.
No. 52
My apologies sometimes its annoying to see people being mislead. Again my apologies
#46 The Engineer:”…..hence my point that you can not calculate tax on Revenue. ” Mr. Engineer you sound learned. According to Business Week, Zambia’s copper output in 2010 was 819,159 metric tons. How much was that in Revenue terms?
#46 The Engineer: Sir, if you are able to figure out the revenue volume from copper alone, I would like you to also take into account the fact that mining in Zambia is more than just copper alone. So when a reference is made to “mining sector”, it means all the mining activities in the country, not just copper mining alone, and that all those mining activities contributed only 2%. I guess, since you have the brains, you will be able to justify that.
#51 THE ENGINEER – It is the strength of the lobby groups, that ‘s the point I’m making. Economically, a company cannot make a loss because of tax on income it didn’t take into account when projecting its future profits! Mining companies are not tuntembas, they project their future operations, future profits and negotiate for tax-holiday and other incetives based on that. Everything else is a bonus! I REPEAT, the reason Windfall tax on Gold is being considered in Australia is because the price of Gold is higher than what govt and gold miners had projected. The only argument against a windfall tax is when as a company you present a fresh investment programme which uses increased current revenue to expand production beyond your previous plan. There is no proof that is the case in Zambia!
Sorry I meant #52.
The debate for windfall tax should be over, we need to devise a new tax code that will ensure both parties get what they deserve. If the windfall tax scares away investors then it is of now good to us, if it puts more money into the foreign investors than the economy then again it’s of no use to us — the answer is to find the optimum.
@54 Australian Engineer, thanks for apologizing. Only the wise and educated do that. Lets not fall prey to the Kaponya language, lest people fail to differentiate us. Enjoy your day
No 57
I think we fail to appreciate how much mining has contributed to Zambia since the failure of ZCCM. We need to take into account the contribution of mining beyond just TAX. Mining is a 20 to 30 year investment. Thats the horizon we need to consider. The mines would have paid back capital investments and the contribution of TAX and others will be much higher than the 2% being talked about. I worked at ZCCM in the early 1990’s when lives were destroyed because of what happened to the mines. The benefit is in the strengthening of tax collection and employing competent people at ZRA
The point is we need to build a sustainable mining industry which provides us with long term benefits as is the case in Australia, Canada and South Africa. This should happen in secondary industries and technology as well as skills transfer. We are better off getting an average tax over 30 years than a huge tax over 5 year. I totally agree with No.59. And in all indication mine owners have been more than willing to accommodate GRZ as shown by First Quantum
The problem is that this has been turned into a political issue rather than an intellectual and educative debt to benefit everyone i.e Zambia and the mines included.
#61, 62 THE ENGINEER – I fully appreciate your point presenting a long-term view to benefits. I do agree – but with a slight reservation. First of all the examples you are giving of South Africa, Australia, Canada – in these countries, most mining companies are native citizen industries to those countries and so the prospect of long-term planning is always a re-assuring one. In Zambia, we just don’t know when things could turn belly up and all the companies pack up and pull out leaving us – after they have enjoyed tax hollidays, incentives etc etc. So long-term planning, yes, but be reasonable. Without windfall tax, how would govt sustain the employment and operations in those mines if the companies suddenly decided to walk away?? In short, windfall tax has a long-term value.
No 64
Again you are wrong. Anglo, BHP, BeBeers are all no longer native to South Africa. They have all moved head offices and primary listings out of South Africa. Lumwana, Kansenshi Chambishi etc will not just pack up and leave huge investment in Zambia. They will pack up when you create a none business environment. Ask Zimbabweans they will tell you. Zimbabwe is now reduced to a country with an economy in the club of Swaziland. my question to you is how is it that other mining countries whose economies is based on mining e.g Chile, Canada etc have been able to build a sustainable mining industry without a windfall tax? My answer as Zambians we just do not know how to manage.
Africans manage their countries like the world is coming to an end tomorrow. Look at the Chinese and other developed countries, its all about sustainable long term management to benefit today and the future… Thats what needs to happen in Zambia. To concentrate our energy over windfall tax as the get way out of poverty is being very short sighted. Nigeria and Angola a huge produces of oil. Yet electricity production in Nigeria 1600 mega watts same has Zambia. 90% of Nigeria population has no access to electricity. Compare that to Dubai which also produces oil and see how much Dubai is developed. My point is its not the Windfall tax which will develop or make Zambia better. Its the total management of all resources for long term sustainable development
@The Engineer (Australia)
This is the first time someone has used sustainable and mining in the same sentence…please lets get facts right here.. there is nothing sustainable about mining; you dig out and you leave a hole end of story, you want to talk about sustainability talk about Agriculture.
#65 THE ENGINEER – A company can have its headquarters or list on stock exchange anywhere because we now live in a global economy. First Quantum listing on LUSE does not make it Zambian, for example. When I say native citizens I’m talking about ownership. On your question of why Chile, Canada have been able to build sustainable mining industry without windfall tax? The answer is simple, ‘Windfall Tax’ is a new economic concept. In the past, commodity prices used to be relatively stable because markets were quite restricted. Zambia sold its copper only through LME; whereas now we deal directly with nations (e.g. china). That makes the market and everything in it very dynamic. By the way, Chile has by far a higher and more efficient tax regime than Zambia.
#66 THE ENGINEER – You are generalising too much. But anyway it is true as you say that it is not Windfall Tax that will develop Zambia; ofcourse, there are other factors that have to come into the equation to generate wealth for a country, including good governance. However, that argument is different from saying Windfall Tax is wrong – which is what you have been arguing since we begun this discussion. So let us start again: windfall tax is legitimate and right for Zambia and Musokotwane and Fundanga made a terrible error to withdraw it. We need that income for development even as we admit that without good management that revenue may still be misused. Whereas, your argument sounds like: no, Zambia doesn’t need oxygen because oxygen alone will not keep Zambians alive!! Illogical.
Some people here are just talking cccrrrap.
The man has made a very good point. We are losing shit loads of money from the mining industry, regardless of whether its tax paid on turnover or profits, regardless of what fancy name you brand it – windfall tax, rainfall tax, sunshine tax!
The fact is, we have a vast amount of wealth in zambia and your sorry-ass-grandparents don’t even taste a shit bit of it.
Shut the f*&%k up if you eat two meals a day and think you have the right to denounce such a valid point being made. *****S!!
No 67
For you own knowledge may be you never knew this.. 86% of everything you see around you has been mined somewhere. Without mining you can not sustain life. Any country in the world which has ever developed its has been on the back of mined commodities. Agriculture as you know it can not survive without mining, be in tractors and all other inputs used in agriculture which are mined some how. Hope that thoughts for you to think about.
@#70 Wisdom: I concur. What a shame that these highly opinionated but ignorant individuals whom you are calling “*****s” can afford to refer to others as “brainless”! Can’t we see how even a small country like Botswana has been able to benefit from its natural resources?
#70 WISDOM – I’m not be-littling your point. It’s just that you have made me laugh…! I like the idea of sunshine tax! Maybe we could impose that on our tourism industry!! Lol! But your point is valid, people need a developed economy.
No 66 if you read my contributions you will see that not in any of them have i said No to Windfall Tax. Please go read back again
So much has been talked about how Botswana has benefits from its minerals. I have been to Botswana a number of time. I see a country which is very rural with nothing much to show for especially for the money the have. Botswana’s revenue from diamonds is invested in hedge funds and pension funds in europe. Who benefits from that? Is this Botswana? The result is that in the 2008 financial crisis Botswana lost 38% of its investment which was in european funds and was almost asking for funding from the IMF. Again a clear case of how african’s have no vision. Why has Botswana not invested in projects in SADC?
#75 ENGINEER – Good point there. I’m really interested because I have always wondered where Botswana takes the money it makes – who really benefits from that wealth. Do you think that as Africans we lack vision or is it just the actual realisation of whatever vision or visions we have that may be problematic? I for instance think that you are perfectly intelligent and well informed African, whom given resources would have something to implement and I ‘meet’ a lot of other intelligent people on this site whom I’m sure could do something, judging from the discussions that we hold. What do you make of that? This is just a genuine question just seeking your opinion.
@#75 The Engineer: Couldn’t one say that Botswana has done better than Zambia? At its independence in 1965, Botswana was one of the poorest countries in the world. That is no longer the case, and all because of its mineral wealth. At its independence in 1964 Zambia was the richest country in Africa north of the Limpopo River. The country is now ranked one of the poorest in Africa and in the world as a whole, and this despite the country’s mineral wealth. For the four years that I lived in Botswana running water at home was guaranteed. In Zambia to have running water at home is a miracle by the Almighty. Consider that Botswana is a desert and Zambia is not. At least Botswana has money to invest.
Rupiah Banda and his sons have robed zambia in the 3 years they have been in Government.They are 10 times richer than what chiluba had stolen.The president receives gifts from the owners of the mines (especialy kcm) thats the reason why they didnt re- introduce windfall tax when copper prices started rising (>$7000).Only kansanshi is paying more taxes to grz others cheat on their production figures and show high cost of production (cop).Dont vote for mmd!!
#69 – Kunta kinte – Thank you so much for your informative postings and I can see you acquire both sound knowledge in taxation and common sense. With The Engineer, I am afraid his reasoning is lop sided toward MMD and I find it very difficult to debate with him. Its nice to see that we have concerned and erudite zambians like you if I may say so.
# 79 AMAYAMA – thanks abena. I’m amazed at how our government has gotten away with it on this issue by always presenting a false farcade to the general public that windfall tax is a very complicated matter. The truth is that the combination of arrogance of the mining companies that took advantage of the death of Levy Mwanawasa, and the naivity within RB’s new government, both worked against us. The mines have probably the most powerful lobby group in the country in the name of the Chamber of Mines. What I find surprising is that the Chamber of Mines is being run by a front og Zambians, who are supposed to know better about our development problems as a country. They use very complex arguments just to put off common Zambians and curtail debate. We are losing every day.
#75 I agree with #77 Botswana has had good governance for the little resources they have. Look at how they have developed their beef industry and tourism despite being a desert with a tiny population. Zambia can be one of the richest countries in the world if it had good governance of its resources. Zambia is blessed with mineral resources, God given tourist attractions like the Victoria falls, arable land, and educated population. However, most of the Zambian go to places like Namibia, Botswana and South Africa for job opportunities. Just imagine if Botswana or South Africa had our tourist attractions, arable land , mineral resources. Zambia’s policies have been messed up since 1964 and MMD’s removal of the windfall tax proves it.
LATEST: EMMAUELS TB JOSHUA HAS SAID, I SEE THE CURRENT PRESIDENT IN CENTRAL AFRICA LOOSING TO THE OPPOSITION told by a friend( Any info you hard core followers of Josual coz i dont believe such). BUT THE FACT IS RB HAS MESSED UP WHETHER TB JOSUAL OR NOT, THE MAN IS GOING, I DONT LIKE SATA BUT BECAUSE OF THIS MESS BY MMD/RB, I AM NOW IN THE BOAT, ONLY A BOOTLIKER CAN VOTE FOR RB/MMD….VIVA JOINING THE BOAT, VIVA SATA, MWAMUKOLO……….
#82 BA ZAMBIA – I don’t really care who wins, because every citizen has equal and inalienable right to be President of Zambia as long as they fullfil the conditions. However, seeing Kabimba preaching violence and Frank Bwalya killing a live chicken on the podium at a daylight public rally and the lack of any solid policy plans makes me extremely concerned if PF were to win these coming elections. In my professional view if PF wins the current elections the ecnomy will tumble within just half a year, most FDI will change direction to other countries, and the Zambians who will suffer most will be his supporters who are mostly poor and uneducated – the little they have now will vanish. The middle class most of whom don’t want PF to win will be minimally affected. But it’s just my opinion.
#83 PF policies are vague
Milupi has his ‘money where his mouth is’ on this one. If a country can’t benefit from its main resource, that country is doomed (for lack of a better term).
I think Kunta-Kinte has explained this ‘Windfall tax’ very well and the likes of ‘The Engineer’ are misleading people. To add to Kent’s explanation this is supposed to be a tax on profits… the effect on cash flows (as in business cash flows) will be negligible. It’s completely different to payroll tax, company tax and licence fees which are part of the business operational costs (in that they increase the cost of doing business) that the Engineer and the rest of the people are referring to.
As for the ‘ The Engineer’ talking about Australia, again he is giving out not the entire story. I live in Australia and here are the facts:
The Mineral Resource Rent Tax (MRRT) is a proposed tax on profits generated from the exploitation of non-renewable resources in Australia – It will be levied at 30% of the “super profits”. It replaces the Resource Super Profit Tax (RSPT) introduced by the last PM. The MRRT will kick in from 1 July 2012. The demise of Rudd was due in part because of the negative campaign orchestrated by the power mining companies. They spent over $20m in campaigning and advertisements to bring him down. The new PM Julia Gillard succeeded in part by reaching an agreement with several of the largest mining firms, among them BHP Billiton and Rio Tinto Group.
That said, the mining companies have always paid and still pay royalties to the States which vary depending on the mineral being mined and have declined in percentage over the years. By the way Australia has always had a Windfall Tax (Collection/Imposition) Act of 1998.
I will right away take hold of your rss feed as I can’t in finding your email subscription link or newsletter service. Do you have any? Kindly let me know in order that I may subscribe. Thanks.
Unquestionably believe that which you said. Your favorite reason seemed to be at the internet the easiest factor to have in mind of. I say to you, I definitely get annoyed even as people think about issues that they just don’t realize about. You controlled to hit the nail upon the highest and also defined out the entire thing without having side effect , folks can take a signal. Will probably be back to get more. Thank you
advertising