Policy Consultant Bob Sichinga says it is imperative that the new government re-introduces windfall tax so that all Zambians benefit from the wealth in the mining sector.
Mr Sichinga says the new government should also ensure that investors do not externalize all the profits they make in the sector but use the money for development.
He says the new administration should remain committed to broadening the tax base and indentify different social groups and determine how much tax each group can pay according to their earnings.
Mr Sichinga was when he appeared on the ZNBC television programme, Kwacha Good morning Zambia on Saturday in Lusaka.
He says the Patriotic Front is aware that there is no system in place to get taxes from the informal sector and has urged the new administration to create a new system that will embrace all sectors.
Mr Sichinga says it is important that government broadens the tax base in order to reduce the tax burden on the formal sector.
[ZNBC]
A Nigerian national who was in the dark world but now been saved and born again, who has seen the light and feels the need to speak as keeping quiet will be a betrayal of the new found faith and beliefs has said a Prominent Leader in Zambia knows him well.
“We have done alot of evil things together. He knows and I know. Alot of Zambians will be sacrificed just before the elections. The recent spate of senseless deaths on the Zambian roads, children drowning, a thief getting burnt and a worker getting killed by a conveyor are not ordinary. There is a deeper, darker hand at play and there is an underlying reason – the request by the Leader to our former master to do all in his power to get him the Presidency. More deaths will come and surely wont make sense.
Evil at work, you are an idoit!
The Leader knows the master personally. If he wins the election, the master has asked the Leader to cancel the Christian Nation declaration within 90 days. Further, the grand master will sustain the life of Mr.Sata for only 3 years after which he will die and should be replaced by a single woman. The Christian nation declaration has put Zambia on a collision path. This Leader has been given power to be liked. People’s liking for Satan’s chosen one nee He will be praised by people he insults. He will threaten people and they will laugh and kiss his feet. This is pure evil at play. The very people who have been fighting his evils over the years will embrace him. President Banda is at threat of satanic forces. Pray for your Nation.
Stephen Odaiy
you and Stephen Odaiy are fools together.
on inauguration Sata thanked the church…which church exactly was he thanking and on top of it he released 2 doves seen to be part of a ritual.
some have gone further to speculate that Zambia will have a first female vice president….a single woman…and she is to take over when he passes in 3 years
PRAY FOR ZAMBIA
You seem to know a lot about this, are also involved. apparently every jim and jack is a prophet of God and saying things they ought not to. Do you have more evidence than what this Nigerian of yours says. People should learn not to use the name of God in vain
God is in control so stop yip yuking partner…
What’s this nonsense, do not use the name of the Lord in vain. Whatever fear you are trying to instil in the people the devil is the lair. Revisit your spiritual life.
IWE KWATA AMANO,WHICH RITUALS ARE U TALKIN ABOUT,UBUTUTU BWEKABWEKA MUMUTWE,IN EUROPE THEY USE DOVES AS A SIGN OF FREEDOM AND ACHIEVEMENT IN SOMETHING,THEY RELEASE THEM IN THE SKY.DON’T DISGRACE YOUR SELF BY TALKIN ABOUT WHAT U DON’T UNDERSTAND WELL.MULEIPUSHA!!
Now to quickly starve the duckling that lays the golden egg. The mining industry in Zambia should be treated as an infant industry which is still not truly being utilised to its full potential. The priority should NOT be to implement a windfall tax, it should be to attract even more foreign investors and grow the countries GNP whilst simultaneously encouraging the growth of an indigeniously owned manufacturing ecosystem closely linked to the mining industry, utilise the MFEZ. When it comes to economic policy the MMD government over the last couple years was very progressive and this led to the massive increases in FDI inflow into the country. There is no wealth to share yet, we need more investment…there is need to build a proper manufacturing ecosystem.
Brilliant policies by PF. The investors will benefit from w/fall tax too. It is important the environment they operate in has proper buildings, roads, electricity, railway, clean water and hospitals. Furthermore, help the majority of Zambians they interact with get educated. This money can also help the economy diversify to other stable industries like agriculture, tourism and timber industry.
#1-3 Please contribute to the topic at hand and save the space for others with more sensible comments. We are supposed to be analysing national issues here and debating on how Zambians can finally start benfitiing from their wealth in the mines and not not your personal issues.
Thanks.
Am inclingd to bliev ths , remember the rd accidnts includn that of hs mother durin the reign of one late president. I knw hw 3 pipo in zambia wnt to c a nigerian master in thailand. One bcem presidnt, one leads a big church pentecoast the 3rd busines. The firzt sacrifid hs family n pipo. The church man baths once a month n wearz a strong perfume to kil the scent. Evo in zambia a month n wearz a strong perfume to kil the scent. Evo in zambia
Ba LT and you let some comments appear??? You are so biased. My comments are backed but some are speculative, vindictive, destructive and those can appear. Shame on you.
#1, 2 – – You and Stephen Odaiy are fools. Everyone knows that Nigerians are master conmen in all the Universe and you dare come one this site with you stupidity. Sata is President, get with the program or you will be hurting everyday.
same goes to LT, it is clear that you guys are pro MMD with your fake journalism
What is this Nigerian nonsense?
Mr. Sichinga has raised very good points for discussion there. There is need to ensure that investors retain part of their profits for development within the country. If broadening the tax base is a solution, so let it be. We do not want a situation where foreign companies come in to raid our country, deplete our resources and leave.
” He says the Patriotic Front is aware that there is no system in place to get taxes from the informal sector and has urged the new administration to create a new system that will embrace all sectors. ”
This is more neoliberal nonsense. Instead of thinking about how the state could squeeze more blood from a rock, the mines should start paying more than $1.3 billion a year (with back taxes), if not more.
Everyone else should have their PAYE lowered. The money must be invested in economically productive ventures, so that the economy can diversify away from the exportation of copper.
I would suggest supporting manufacturing (legislatively and financially), which would also decrease unemployment. And agriculture, including small scale irrigation.
# 1-3 what you said is completely irrelevant……………….. now concerning the article: if you tax the investors too much , they’ll leave. zambia needs more investors. hopefully this govt will encourage more foreign investment
What is “too much”? In all honesty, the current situation where the few people in formal employment are contributing much more that all corporations put together is totally unacceptable!
EVIL AT WORK, so before Sata’s presidency there was no evil, no senseless killings, people never got burned…Is it only now that we shall see these things for the first time?
He has stuck to his guns for once, but let see if he follows through and imposes the tax.
Is Sichinga speaking as a private consultant or in some official capacity in PF? I ask cos Sata recently stated in an interview with an overseas news organization that PF will NOT impose windfall tax.
As for blogger 1-3, go see a competent Psychiatrist
I sense that Snr Citizen has changed his identity and is now trying to demonize our new,democratically elected and majority liked presido.Just start packing yo katundu ba Snr Citizen,it time to go back to Zed,i hope you have biult yourself a ka house because you will regret having contributed the so called thousands of dollars to the mmd,that you boasted about.
Nine Chale, ita great to see that you’re back. The 1-3 nonsense definitly needs rebuking!!
This ‘EVIL AT WORK’ blogger is one of those people that are exploiting Zambian people’s love for God. We Zambians love God, but unfortunately there are a lot of people out there that want to exploit this for their self-serving agendas. We just had elections and a new govt is in place. We need to give the new guys a chance to deliver what they promised. This is no time to start using fear to influence peoples opinions. If you lost elections, there will be another opportunity for you, in five years.
We really must get our systems ticking again. I would love to see the empowerment of our local authority by allowing them a lot of say on the running of their jurisdictions. Let them purchase water and electricity wholesale as was the case, and resale to the public. Let them, additionally, recruit competent engineers and civil works technicians who will in turn manage the infrastructure of our city. ZESCO can then return to the core business of bringing about electrification of industry and export excess. Is that too much to ask? Perhaps our tax base can also spread from there…
Spot on #’s 18 and 19. Even the title of 1-3 is revolting enough. The election is over and it is time for all peace loving Zambians to develop our beloved country.
EVIL AT WORK. your are a real satanist your self. SATA’s life is not in individual human beings but with God.if God wants you can pack youself today.
Nubian Princess
It’ relaxing to know we have wise guys like you. Thanks
#1 #3 please learn to speak sense here, don`t worst our time reading your senseless staff. You call yourself a EVIL AT WORK ******we,,
word
#1-3 please get a life, you on wrong site this is not kachepa 360.
Sichinga is staunch PF and i guess he will be part of PF government. So, i hope he will push the ideas he has put across.
The idea tabled must be supported by all Zambians that would like to see prosperity. We must all understand that mineral resources are very much depletive and as such, their future earnings is not guarenteed. In that respect, the time is now to institute a tax scheme that will benefit Zambia and the investor. If the investor chooses to leave, let them do so. Going forward when the mineral earnings become better, they will come back.
LT its just too early to bring such nonsense to the platform, satanism has not come with PF please be mature in your journalism GOD is there and nothing of your thoughts will take place. lets just give the man time to do what he has promised the masses
Mr Sichinga is right we need to benefit from our resources. Please do it as PF. You have our support. People from outside can not do bussiness, make huge profits and leave us with nothing.
Robert sichinga must be our future finance minister
we don’t want a new crook such as Musokotwane
The future govt need money to finance the pf manifesto…
I don’t forget “money in YOUR pockets” !!!
instead of lining the pockets of Wazungu, wachina and wahindi shareholders… their pockets are full, ours are empty !!
Sichinga is the man we need to recover our dignity
Mr President, don’t betray us !
Zambians have not had a fair share of their mineral wealth and its now time to turn that corner.
With the reintroduction of the windfall tax, the social sector such as health and education will be well looked after.
Its also about time we started adding value to our mineral wealth instead of exporting like we have done over the years.
We cannot continue to export for example uncut and unpolished emeralds. Its hurts me just seeing on tv that Zambia has the BEST emeralds in the world and yet we get very little from them. Look at Israel and the money it makes in processing precious and semi-precious minerals and yet it mines none.
Indeni petroleum plant is another that needs a critical look and establishing a second modern plant will be more ideal.
We are a rich country
#27 Ba Rocco how well do you know Robert Sichinga? If Musokotwane can be described as a crook I dont think you can find an appropriate word to describe Bob! Sichinga is talking nonsense. There is no business anywhere in the world that can be forced to keep money in a particular country once it has paid its dues in terms of taxes and levies. There is no advantage for Zambia in keeping a lot of dollars in the country. This will only lead to the overvaluation of the Kwacha. This will make Zambia’s export commodities other than copper very expensive and uncompetitive. It is a misdirected policy. If you want a ‘pschologically’ strong Kwacha; I would advise you to simply get rid of three zeros on each Kwacha note. Bob’s advice is sucidal!
Unfortunately, Bob Sichinga is only looking at half of the total picture. The notion that a Country can prosper by producing raw material (Copper and its by-products in this case) and sell off to other countries (China, EU etc in this case) and merely get tax is very misleading. I expect more scope from a ‘Policy Consultant’. Can anyone give me an example of any Country on the Planet that has prospered i.e. created jobs for its citizens, by merely collecting Tax from sold raw material? Countries prosper by focusing on their secondary industries and using resources as much as possible in-house. We are busy creating jobs (cottage industries) in China instead of Zambia. This is not rocket science!. Mr. Sichinga, were your misquoted by LT or what?.
Evil at work @ 1,2,3 .Religion( Christianity, Islam Hinduism etc)-belief in the supernatural is a Medieval thing. This is a scum created by a human being and God belongs nowhere but in the believer`s mind. Is it a wonder to you that Christianity is dying in Europe, where it was exported from and that here in the US where it still has a foothold, it’s just superficial. By the way if you don`t mind, there has been a breakthrough in Europe with the experiment on how the “BIG BANG” started .To see the real light, I prod you to do some research. You don`t have to go to the Library, everything is there on the internet. Thy shall not lag behind, the world is moving fast, better keep pace and come to terms with reality
ZAMBIANS BE WARE OF NIGERIAN PASTORS SOME OF THEM ARE WTCHES FALSE PROFTES AND THEY ALWAYS PROPHECY DOOM.
THEY ARE GONGAS THEY ARE AFTER MONEY
# 30
Spot on!! and that is precisely the point I am trying to make too. While collecting taxes is critical, we need to add value to our raw materials.
We have been exporting copper as a raw material to other countries for 47years, ultimately creating jobs for citizens of such countries.
This must change and change to enhance value
SOME OF THE ID1OTS ON THIS BLOG ARE LUNATICS AND INSTEAD OF DISCUSSING IMPORTANT ISSUES IN THE ARTICLE THEY ARE TALKING ABOUT ISSUES FROM WHATEVER. NO WONDER YOU ARE STILL STUCK IN YOU OWN LIFESTYLES BECAUSE YOU CANT DIFFERENTIATE BETWEEN ARGUMENTS AT HAND AND ARGUMENTS WITHOUT PREMISES. GET A LIFE GUYS LETS TALK ISSUES IN THE ARTICLE AND SHARE IDEAS.
#1-3 too much Nigerian movies you cant even analyse issues surely, shame on you.
We had a windfall tax on the mining Industry during the Chiluba days. It is not my intention to speculate on where the money raised went. For me, the key is that the new government implements the equal work equal pay policy. Please get rid of this nonsense of expatriate salaries. People should be paid for the job they do and not according to the passport they hold. With increased salaries, the government stands a chance of getting increased revenues through PAYE.
Number 1-3. This is what happens when you spend half your day watching that nonsense you call Nigerian movies….read a book instead! Mr. Sichinga being one of the architects of the PF manifesto should have gone a step further to give us details on how they hope to implement this policy instead of speaking in generalizations as he has been doing. The campaigns are over…..elections where won so now is a good time to give us details.
Looks like he is following what Magande said.
Instead of just following I hope they can implement or better yet hire Magande as a consultant.
#39 I agree Magande needs to be hired. He worked succesfully with Mwanawasa and has alot of experience in this area.
#29 @musiwa likota
I repeat Sichinga is the man we need
—
The Post, Thu 03 Feb. 2011
Sichinga bemoans loss of mining revenues
By Chiwoyu Sinyangwe
Thu 03 Feb. 2011, 04:01 CAT [2017 Reads, 0 Comment(s)]
BOB Sichinga says the country will continue to lose critical benefits from mining revenues as foreign mining firms continue to fund MMD secretly at the expense of taxes.
And Sichinga has challenged opposition political parties to anchor their campaigns in this year’s elections on increasing the country’s ability to benefit from surging mining revenues.
Foreign mining firms last year earned US$6 billion about K29 trillion in gross revenues from a record export of 822,676 metric tonnes of copper, the highest output in the country’s history.
continued
While revenues by mining firms rose by 79.6 per cent largely due to an upswing in the average price of copper on the international market, the country’s Treasury only got K1.7 trillion – the revenue which includes arrears from the disputed 2008 mining fiscal regime.
Commenting on the revelations, Sichinga challenged finance minister Dr Situmbeko Musokotwane to disclose “where the variable tax is” as 2010 results revealed that mining taxes continued to contribute a paltry two per cent to the total tax revenue basket of the Zambia Revenue Authority (ZRA).
Sichinga said there was “something wrong” with the current regime which only allowed the country to get a paltry K1.7 trillion from the total mineral export revenues of K29 trillion by foreign mining firms last year.
continued
“There is something wrong in the whole management of this important resource copper,” said the Lusaka business consultant. “For as long as the mining companies continue to provide pecuniary partisan benefits to the MMD at the expense of the nation, those benefits will continue to sway the minds of the current fiscal managers.”
Sichinga said there was no need of keeping in power a regime that was sacrificing its people over investors.
“I want to challenge political parties to make this a campaign issue,” he said.
“They should be able to go to the people and say ‘if you vote for us, we shall get money from the mines than what the current government is doing.'”
continued
He said the current regime was abating the deprivation of the country’s resources by foreign mining firms.
Sichinga said the current contribution of the mining sector was not acceptable.
He called for the reintroduction of the windfall tax on copper mining.
“I want to challenge President Rupiah Banda and Mr Musokotwane – the economist – to show us where proceeds from the variable tax which they were talking about is,” Sichinga said. “Since he Dr Musokotwane said the variable profit tax is better than the windfall tax, our question to him is ‘let him breakdown the tax contributions of each tax and show us.”
He said the tax contribution of the mining sector in net terms was in negatives.
continued
“This 2.2 per cent earnings the governor Dr Caleb Fundanga is talking about means even the mineral royalty at three per cent, they are not paying,” said Sichinga. “Instead, the mining companies are getting more from ZRA than they are contributing.”
defenders of foreign mining companies
a comment perhaps …
Mr Mwambwa said it is important that Government addresses issues of tax avoidance, mis-invoicing, transfer pricing and outsourcing of business services.
He said it was unfortunate that companies like Mopani Copper Mines have allegedly not paid any corporate taxes for the past five years.
“It’s a paradox that copper is the highest national earner but contributions to tax is low….the only thing Government earns from copper is dividend being shareholders which is also minimal as it is a minority shareholder. The other income is through taxation which also includes Pay As You Earn,” he said.
Mr Mwambwa said Zambia needs a radical change considering that minerals are a wasting asset and cannot be replaced once used.
and on this…
According to an audit conducted by lead auditors – Grant Thornton Zambia – and Econ Pöyry, a Nordic based global consulting and engineering company, there was clear indications from the comparative analyses that there were major problems with both revenues and costs of Mopani Copper mines.
The focal point of the review was to audit a significant and representative part of the mining industry and to cover significant problems during initial phase of changing the Zambian fiscal system in 2008 and 2009 periods.
The audit revealed that most of irregularities were embedded in transfer pricing in revenues owing to Mopani’s links with Glencore AG, which owns 73 per cent of the mining units based in Kitwe and Mufulira.
continued
Most of the overall production is sold to Glencore based on the “Copper Marketing and Off-take Agreement” signed in the year 2000 which entitles Glencore UK a commission of two per cent calculated at the gross value FOB port landing.
“…we believe that the related party sales and pricing mechanisms are not in accordance with the agreement disclosed, or arms length principle,” the audit report stated. “This should have impact on the tax assessment for the period under review.”
The audit revealed that Glencore AG, the purchaser, determines prices and that some copper from Mopani is sold under an “old” contract with copper in one instance being sold at 25 per cent of official prices at LME.
and this
—
Zambia, Africa’s largest copper producer lost an estimated income of USD 175 million in tax revenue between 2003 and 2008 from tax avoidance practices’ by Glencore AG International owned Mopani Copper Mines.
—
The estimates are based on a pilot audit report and falls into two broad categories of transfer pricing of copper at below market rates and over inflating costs. It added that the analysis was calculated by the sum of difference between the copper revenue and the mining model and in a trial balance from 2003 to 2008 is USD 697 million.
—
Zambia continues to lose on dividends from Mopani Copper Mines as the Glencore owned mine never declare any dividends to Zambia Consolidated Copper Mines Investment Holdings.
continued
During the period under review, Action Aid estimates that the Zambians government lost an estimated USD 50 million per year in undeclared dividends to ZCCM IH by Mopani. Mopani Copper Mines, according to Action Aid was avoiding declaring any dividends by ZCCM IH through transfer pricing and over statement of the costs.
mining companies plunder Zed !!
GLENCORE OUT OF ZAMBIA !!!
MONEY IN ZAMBIAN POKETS !!!
VIVA SICHINGA !!
I am about Sober now with celebrating. So my question is this, what position shall president Sata give GBM? Cause I am worried, that’s my real big concern, followed by Kambwili he too I need to know cause of all PF those two are a little unstable.
#41 to 49, thats the kind of data we need. Indeed Copper and any mineral is a wasting asset and our country needs to maximise on the revenue generate so that we can invest in productive sectors and develop and maintain our infrastructure. Furthermore, we need more money in our banks so that the cost of borrowing is lowered to enable our people access credit in order for them to invest in businesses.
The bottom line is that, it’s about time that we started enjoying the benefits of being Africa’s number one copper producer. These mining companies have taken us for a ride for too long. I got news for them; there is a new sheriff in town.
Why brutally murder the goose that lays the eggs??? Windfall tax should not be an option. PF should not even talk about this industry killing policy. Windfall tax will kill the mining industry which will later affect the Zambian economy. It should not be a policy that is considered as it will affect Zambia economically.
My 2 cents wisdom is to ask Mr “Policy Consultant” to go read some more with what is happening to the world economy and how commodity prices are going to be affected. Mining investment is a long term view which can not be managed with myopic short term policies. Good luck time will tell
@ #53 The Engineer (Australia)
I also think Mr. Chisinga should read up on how countries are getting rid of windfall tax instead of introducing it. It is now clear that countries want to grow their mining industries and it is for this reason that they are getting rid of the windfall tax. Mongolia is an example of this. Namibia shelved its plans to introduce a windfall tax. What we want is a sustainable mining industry. Windfall tax cannot provide for this. I really miss Dr. Musokotwane right now.
My 2 cents wisdom to Mr “Policy Consultant” consultant is for him to go spend sometime researching on whats happening to the world economy and how commodity prices are going to be affected. Mining investment is a long term view (20 – 30 yrs) which can not be managed with myopic short term policies. The problem with Bob is that he has become too obsessed with Windfall Tax thinking it is the end game to Zambia’s problems. This is no time to play with the goose that lays the egg in this economic troubled times. Like the Kaunda days we still remain obsessed with mining when Zambia has alot of natural resources which can provide lasting economic benefits beyond copper. PF should learn not to build Zambia’s fortunes around mining as the past governments have done.
When the copper music stops playing, Zambians will have no chairs to seat on. Good luck don’t say you were not warned
# The Engineer ( Australia) & Captialist please face facts your 2% revenue from the mines that accounted for 70% of export does not work. People need to enjoy the benefits of Zambia’s mineral resources and the elections spelt it out to the nation. Dr Mwanawasa and Magande’s introduction of w/fall tax was a great achievement for the Zambian economy. Sichinga is on the right track. People can’t survive on your 2% revenue economic theories that can’t even allow the economy to diversify to other industries.
Bob Sichinga will be Finance Minister in this week’s 12 man cabinet.
Great idea.
I think this is a great idea, and it will help to develop zambia and its economy
Why do these individuals who call a tax on the mines “industry killing”, but don’t call PAYE “middle class killing”?
Why would Zambian workers in official employment collectively and individually (percentage wise) pay more in taxes than the mining industry?
So please stop shilling for the foreign mining houses. The money is needed in Zambia, not in Zurich.
# 1,2,3 you are so out of touch, let me go off topic coz this is aggravating me alot. instead of contributing to the debate at hand you are busy talking bout satanism…. for your own information sata is real so is God, so dont be coming here tryna school us with your nosense bullshit..just like someone said watching too much of those junk movies called Nigerian movies thats what you get…do a lil bit of some readings homie especially the Bible bro you will have nothing to fear but God(have faith and trust in him brother)
No. 59 We may not call ourselves “Policy Consultants” we just happen to know something more about mineral economics than Mr Sichinga. The problem in Zambia is that we are always lead by the blind. Do your self a favor and search for mineral tax you might learn a thing or two about whats happening in the world. The world is going to go through a terrible 3 to 4 yrs of economic trouble. The copper prices are going to come under huge pressure. Copper stocks have already reached 464,000 tons in LME warehouses (normal is below 200,000). Look out for a massive fall in copper prices in the next coming months. You will see what will happen in Zambia and Mr Policy Consultant will be a changed man
#61 you seem to favor getting 2% revenue from the mines forever. Who do you think will pay for the roads, pollution and money to diversify the economy.
BOB SICHINGA is one of the big flops we have on the zambian political arena.the man talks too much but acts little.he could not even utilize the 3.5 billion loan he got from DBZ.the man is a big flop
Sichinga is so much of a theorist than a practical person. Windfall tax is retrogressive. What will stop mining companies cook up accounts to avert paying these taxes. The new government should be looking at creating an enabling environment to broaden the economy and making Zambia an attractive country to live and invest in.
Zambia needs smart policies to attract FDIs and highly skilled human resource. Zambia needs very good schools, hospitals, clean water, a good supply of electricity, a very good road infrastructure, a well equipped and non corrupt police and the like.
61 The Engineer,
” The copper prices are going to come under huge pressure. Copper stocks have already reached 464,000 tons in LME warehouses (normal is below 200,000). Look out for a massive fall in copper prices in the next coming months. ”
All commodity prices are already falling/correcting, copper, gold, silver, etc. Therefore, it has nothing to do with supply and demand in copper markets, or Zambian politics. However, until the banking and mortgage crises are sorted out, the bias in commodities prices is going to be to the upside.
If you knew more about world markets, you would know that commodity prices are high because of speculation, aided by the deregulation of the financial markets, and crime.
No 63
What people do not understand is that Zambia collected 2% revenue from not because the current taxes are low. Its because the government does not even know or understand how to collect the mining tax. How can you collect a tax you do not understand? How many people at Ministry of finance, ZRA understand mineral tax? Its required a Nordic company to show them that Mopani was not paying tax. How many years has Zambia been mining copper and yet the country has no mineral tax experts? In short the country has no capacity to collect tax. Its not the taxes which are low. You can increase the tax rate if you do not know hoe to collect it, the mines will still pay the same tax
No 64 i know a lot about commodity prices to give you a few tips… copper does not behave like gold, silver etc. Go google and understand my copper is called “Dr Copper” its the true measure of the state of the world economy. If copper stocks go above 400,000 the price starts to fall. because copper is not used for speculation like gold, silver etc. because you can not buy copper, its all forward sold, in short you can not speculate on physical copper simply because you can not buy it. If you are not using copper to build houses, cars etc the price simply drops. Thats what will happen in the next 3 – 4 yrs. Mineral economics 101
Pipo need to do a bit of economics or social studies.What is the relationship between Taxes in the country and Nigerian rituals for one to comment on the blog?Anyway,the PF should tactically move on the motion of more benefit to Zambians withous unnecessarily scare the already afraid investors.The Chinese are the only ones who can accept fair play ,thats why Sata should create good relationship with them and then demand that thay pay more.Western investors are too philosophical about risks in business!All the best!
In other words the copper market is already in surplus and mines will soon start reducing capacity. 2008/9 round two very soon so brace yourself for a very ruff ride.
By the way as we debate… the LME copper forward price for 3 months is at US$7321. I do not know much about commodity prices as you said but i can give you a few useful hints :)
reintroduce windfall tax
in 90 days they promised to do it in 90 days
The Engineer (Australia)####### WE NEED YOU ON THIS BLOG. PLEASE GIVE US MORE DATA.
The biggest failure of African governments has always been their failure to understand that government can not development the country on its own. The greatest weakeness in the Zambian economy at the moment is that the government has not been able to provide policies that facilite the creation of businesses. The PF government needs to remove red tape in creation of businesses and encourage entreprenuers to open businesses. Secondly no country succeeds by depending 100% on foreign investment, Zambia can only be developed by Zambians, government needs to encourage Zambians to own the economy and to be involved in development. As part of that process, we should deal with foreign companies that are willing to put up manufacturing plants in Zambia.
# 74.The Engineer (Australia). Please do not insult us. It is your F.oolish MMD government who appointment cadres who does not know anything about mining tax. Or they pretended not to know so that you and your MMD can get kick backs from the mines. Zambia has alot of competed Tax expats managing complicated organisations. We have Engineers like you but most of big engineering projects are managed by foreigners. Why? Are you incompetent? Sichinga has a point. We need to collect ENOUGH tax from our resources. We in PF will find Zambians to manage that.
So Sichinga’s first preoccupation is windfall tax?. This is not the best way to create wealth for a nation. Right now the Chinese are focking to Afganistan where the world’s largest Copper deposits have been discovered! Once the mining starts, the price of copper will obviously drop then again we will looking for ways of filling the gap. Now is time to attarct more FDIs. The mines are already secured investment providing employment to our people.
#82 let the chinese go, did we go on their door steps begging or they came because we have had a viable and friendly environment? Afaghanstan is like south sudan -war torn and still very volatile and probably we should ask ourselves the question why the russians left by just exploring if at all the much talked about largest copper reserves are there. in zambia we need to enjoy this resource as its a wasting asset and cannot be replenished so why wait until there are gigantic holes in much of the zambian landscape while the money underneath has been siphoned.
#84 not 82, see your friends are saying afaghan can get about $400m per year and what does the current mining industry pay toward loyalties in zambia, less than peanuts
ZNBC or somebody didn’t do a good job at reporting what he said on the taxes – but whats new? he mentioned the need for the mines to retain sales in banks locally so that there is stability and enough for the private sector and PPPs involved in value addition. By the way is ZRA still asking Winter Kabimba to them that K6 bn? – rememeber 7 days to pay?
What a joke of a policy statement? The trouble with people like Bob Sichinga is that they pluck titles out of thin air. The guy is simply a cadre and by no means an economist as he does not have a degree in the subject. It is a disgrace considering Zambia has the likes of Dambisa Moyo to parade on ZNBC. For a start what Zambia needs right now is to create more jobs for the young population. In fact that was the demise of the last Government and will be for this new one. To do so Zambia will need to ensure that the pledged FDI estimated at $6billion to 2013 does materialize. Unfortunately people like Bob Sichinga are busy giving back of a matchbox advice to GRZ. I hope the new Govt will see this guy for what he is.
We can develop our provincial headquarters with the loot from Windfall Tax. All the 9 provincial headquarters require administrative infrastructure to enable effective management of each province. This must be our mast project to change Zambia for better.
MrK #73, my advice to you is to agitate for small govenment, broaden the tax base and along with that a reduction in the tax on the middle class. The windfall tax nonsense is not progressive and will only create uncertainty for investors who may defer the much needed investment and jobs. The most sustenable solution is in fact not mining, but other sectors such as tourism, manufacturing and agriculture including agro-processing. Also GRZ must focus on effective use of the resources rather than increasing taxes as a way of offsetting the inefficiencies. Try to stop our sisters and brothers from having too many kids as well. 2.8% population growth is not helping.
This is indeed very surprising about this Nigerian who claims to be Christian now and that keeping silent would be a wrong thing to do. What this Nigerian should have done was to wait and read the Bible to understand it and pray. A question for Stephen; WHY WAS IT POSSIBLE THAT YOU WERE SAVED? If you were saved, the same power that saved you can also save the other people no matter how bad they are. The Bible says; LOVE COVERS OVER A MULTITUDE OF SIN. This is not to say that sin should not be exposed but the way you do it matters. If you had really become a true Christian you would not be posting things that would bring division and hatred. You should have known how to share this to Christians and let them pray. I am very curious about your behaviour. We will pray for you
Lusaka Times you are as useless as the Nigerian big mouth. You need a lot of prayer and counselling. I don’t usually like to be irrelevant but some issues cannot be left unchallenged. Why did you not go on then and mention that name because it is quite obvious who you are talking about. Don’t come to Zambia to destroy the Christianity we have to be given a wrong name. God’s power is strong than Satan’s power and we don’t fear Satan in Zambia. Take your immature salvation and fake conversion back to your country. Please people find this Stephen and let him be advised by mature Christians
The issue of us benefiting from the mines is a must for PF to succeed. And we want this govt to succeed. One other issue is to ensure all payments are cleared through BoZ and investors should be free to take out money once dividends are decleared. this way we shall ensure full taxation and liquidity in our country to lend at low rest. Money should not leave before it is banked here in zambia to be used. plenty of ideas how this can be negotiated with the West who are benefiting through cheques being cleared in London.
omly the Zambians polical leaders will benifit
#90 I disagree on you advising our brothers and sisters having more children it their God given right. As the bible says be fruitful and multiply. It is nice to see the population growing after losing a lot of people in the 1990’s. Zambia has enough God given wealth to look after its people if managed well. How may countries have the Victoria falls behind their back yard? How many countries have the climate, water, animal, mineral resources and arable land? Good govt policies, order and ethics is what is missing in Zambia.
#90 Mind tyo error I meant I disagree on you advising our brothers and sisters not to have more children it is their God given right. As the bible says be fruitful and multiply.
Where is captalists aka senior citizen aka ben kangwa? uncle sata please recall the chap so that he can start playing with RB at his farm
90 Bakulu,
” MrK #73, my advice to you is to agitate for small govenment, broaden the tax base and along with that a reduction in the tax on the middle class. ”
We need a lot more government services – education, healthcare, infrastructure, services to farmers, even state owned factories. We are seeing the collapse of the private sector across the world, and the only one standing is the state.
” The windfall tax nonsense is not progressive and will only create uncertainty for investors who may defer the much needed investment and jobs. ”
Mining companies which don’t pay taxes or share profits are investment that the country does not need. The MMD were too corrupt to say so.
The only alternative for the windfall tax is nationalisation. You make your choice.
90 Bakulu,
” Also GRZ must focus on effective use of the resources rather than increasing taxes as a way of offsetting the inefficiencies. Try to stop our sisters and brothers from having too many kids as well. 2.8% population growth is not helping. ”
I agree that there must be streamlining of the state. However, this can easily result in more government services, not fewer.
The moment anyone blames population growth for the failure of their economic system, is the second they have lost the argument.
Zambia is massively underdeveloped. Only 3% of agricultural land under permanent irrigation. There can be a boom in Natural Farming and Organic Farming, which is both low to zero input, and labour intensive if you do it on a commercial scale. You need people for that.
90 Bakulu,
Zambia can easily have a population of 50 million instead of 13 million, if it develops it’s natural resources, especially water/irrigation, and keeps the profits of it’s natural resources.
This boom in copper prices is a once in a lifetime opportunity to diversify the economy into agriculture, manufacturing, infrastructure and services.
To have economic stability, you have to have a diverse economy, so that no one single event can take it out.
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