The Government has said the U-turn by Patriotic Front (PF) president Michael Sata on mining taxes is a clear sign that the opposition leader is inconsistent on various national matters.
Chief Government spokesperson Ronnie Shikapwasha said in Lusaka yesterday that the Government had been focused and consistent in everything it did in the mining industry for the benefit of the miners and the Zambian people.
When the Government in 2008 introduced the windfall tax, Mr Sata was against the idea saying the tax was to blame for the job losses and reduced investments in the country’s copper mining sector.
He said at the time that the tax regime had hiked tax rates in the sector by more than 50 per cent and increased mining costs.
Mr Sata on Friday told Reuters news agency that the Government should restore mining agreements with foreign investors which it cancelled and reinstate tax concessions, in a major u-turn from his previous position.
Mr Sata, previously a strong advocate of higher mine taxes, said the Government should reinstate development agreements it signed with the foreign investors to restore investor confidence and attract further investments.
Some foreign investors such as Canada’s First Quantum Minerals have threatened to take Zambia to court for suspending the development agreements, which waived payment of taxes by the foreign mines for periods of between five to 17 years.
Zambia’s mine taxes include a 15 per cent profit variable tax, 25 per cent corporate tax and a three per cent mineral royalty.
Mines Minister Maxwell Mwale said Mr Sata’s comments were aimed at wooing voters ahead of the 2011 presidential election.
“The PF leader has always advocated higher mining taxes but has now changed…,” Mr Mwale told Reuters.
Finance and National Planning Minister Situmbeko Musokotwane said in April that although the Government was talking to the mining firms on the development agreements, it expected them to accept the existing taxes, especially after Zambia scrapped a controversial 25 per cent windfall tax.
Foreign mining companies operating in Zambia include London-listed Vedanta Reources Plc, Equinox Minerals, Glencore International AG of Switzerland and Metorex of South Africa.
Lieutenant General Shikapwasha, who was responding to questions from journalists at Lusaka International Airport, said the Government had proved that its policies were better even if Mr Sata was known for constantly criticising them.
He said the mining sector was booming and the economy in general was growing.
[ Times of Zambia ]
We know about this story already. The same boring one-Sata shifts goal posts!! Twanaka mwee
SATAturncoat
I am very surprised, I cant believe that Sata has changed his mind. This is not like him at all. He is usually very steadfast in his opinions. I wonder what PF supporters will think about this now?
The difference between Sata and Shikapwasha is that Sata is a wise man who changes his mind when facts change while Skikapwasha is a fo.oli.sh man who is consistently fo.ol.ish.
# 3, nothing has changed apart from the fact that Shikapwasha’s little understanding has dropped futher. He has moved from being dull to being stu.pid
#4 Can you please inform us the facts that have changed regarding this matter? Exactly how many times has Sata shifted his position on the issue of the taxes of the mines? Why has this man suddenly become a friend of the people he called ‘infestors’ and whom he claimed were exploiting Zambians? Is he now saying that we should go back to the original agreements that were signed when he was in govt and that meant the Zambian govt received very little revenue from mining and which miners have been frightened away from investing in Zambia when the mining industry is currently booming and new mines coming on board?
It’s difficult to keep in touch with Sata’s changing faces. A politician must not behave like a prostitute who keeps on telling hers suitors different stories to win their hearts. I don’t see any wisdom in Sata’s never ending shifting of political goals to win political milage. No wonder the majority of his supporters are the poor illiterate folks who can’t grasp what he is on about. It’s clear from his behavour that the best role for him is opposition. This is the role God designed for him and he should just accept it. He is a brilliant opposition leader but the presidency is not for him. It would be costly to have a president whose development programs have a max life span of 90 days.
“….We are not in favour of variable tax or windfall tax based on gross revenue. We therefore suggest that these two taxes be abandoned…..”.
– Michael Sata (Post 29/03/2007)
“Mr Michael Sata Zambia’s main opposition leader said that the country was forfeiting revenue after the tax was scrapped. The MMD government should listen to the cry of the people of Zambia and reintroduce the tax for the benefit of the country. We need the revenue to improve the lives of the Zambian people.”
– Michael Sata (Reuters May 2010)
“Our government will move toward emulating Chile where the tax rate on mines is less than 35 per cent and where investment is thereby encouraged and jobs are created….”
– Michael Sata ( Post 31st Aug 2010)
Rubbish!! Some of these things are beyond certain people, let them keep clowning and entertaining people! Less tax and more money in peoples pockets, we wait to see!! Tulangeni manifesto please!
#9 You forgot to say in 90 days.
HH for Zambia
Can anyone on this blog tell me where I can find MMD’s manifesto.
THE STORY WAS TWISTED BY MMD TIMES OF ? By the way what is Shikapwasha;s stand on Windfall Tax? He defended LPM on this one so who is incosistent? MMD are lookinhg at points that have made SATA popular and twisting these so watch out.
@ 8, i think your blog sums up the article well.
#13 Deja Vu, are you normal? These stories were reported by Sata’s own vuvuzela Post, Reuters (ask Shapi Shacinda), and he has been on radio and TV including VOA exposing his inconsistency. How did the Times of Zambia twist the story? Please read, watch TV and listen to the radio. For starters try blog #8 above, it is written in simple enough English, easy enough to comprehend even by simpletons like yourself.
#15
Sober- Am very sure Iam not mad THANK YOU
#16 Why dont you look at #8 and respond to the points #15 raised?
Sata used to be waiting at the airport BEFORE Chiluba was aquitted when he was going for treatment in SA but now Chiluba is his worst enemy. Just watch, the same thing will happen with HH. Imagine trying to implement govt policy with Sata in charge? There would be weekly cabinet reshuffles and sackings nothing would ever get done least of all the 90 day miracle. Put it simply, the man is going senile, dont know whether those of the effects of the chamba he used to smoke with Chiluba at state house but the old definitely seems to be hallucinating all the time.
#17 You could be right, but tell me which MMD minister, cadre etc stood up against Levy over his harrasment of FTJ? All of them with an exception of the late Chitalu Sampa(Katele was not in parliament) voted for the removal of FTJs immunity so that they could persecute (prosecute?) him. What has happened to day- you know it all. This is the reason I cannot support what Shikapwasha is saying because he is not different from the man he is accusing. I hope this explains my stand.
he is sick and old suffers from senile dementia easily forgets so dont take him seriously but when it comes to vote show him that you cant vote for a demented man
I pitty young UK based Chola Mukanga a self serving PF cadre who has been passionate Sata vuvuzela on and off his UK hosted Zambian economist. This must be a tough job for the young man at worst to to be a publicly known cadre serving such a flip flopper.For long Chola has been singing the Sata song of mor taxes on the mine and on this u-turn, he is struggling to gain some traction without success.To make matters worse its the same Chinese, Indians and so called infestors holding the same mines.
#4 & 5, you’ve summed up your observations so well. Very well articulated my bro, my only concern is that MMD only knows 1 + 1 = 2. If you tell them 1.67 + 0.33 = 2, they will say you’re shifting goal posts. Show the levels of understanding on the current affairs. For your information, I was in the DRC till yesterday, and the DRC government has stuck to there guns with the macinations from First Quantum regarding KMT and now Frontier, which threatens Kansanshi Mining operations as well.
Ba LT, nishi nimwefye ba “Copy and Paste” ba kwa Times of Zambia? Boring!!!!!!!!!!!!!!!!!
99.99% of stories copied and pasted from Times of Zambia. Are you a branch of Times of Zambia?
#17 You have failed to answer. Reason is you see other people dirty linen through your tainted window pane.
We want action not words
Ask him the same question again, a couple of months from now, he will contradict & gainsay again.
#21 Think Twice!
0.67 + 0.33 = 2.00 not just 2! i wonder why u decided to use 2 decimal points on the left side of the equation but not after the equal sign! leave math and science to people with knowledge ok?
#4. That’s the right one. I was thinking about the same. But, you have put it so nicely, simple and straight forward. Shikapwasha, doesn’t know the dynamic state of time. What was the right thing to do yesterday may not be appropriate today. Sata moves with time. I keep wondering- Is this the general Zambia had, sure. His dullness leaves frightenedto have him as a general in times of real war. And am not talking about the war of receiving refugees and sending them back to their own countries. Thanks God we did not have war during his time. Otherwise even Malawi could have beaten us handsdown. I am always impressed when on tv, Gen. Michael Jackson is talking. The way he puts across his coordinated thinking is impressive and convincing of a general.
#27. 0.67 + 0.33 is not always = 2.00 It all depends on the dictating factors on the outside of the process. So, you pre-define the outcome. Depending on what is to be achieved you may wish to have 2.00 or just 2. So your answer and #21’s answer are both correct. I would advice you to try to think outside the box.
from #29 By dictating factor outside the process, I mean: Supposing you are asked to calculate the number of men/women required to accomplish a certain piece of work in a given time. When the answer is (for argument’s sake) say 3.5. You will not say/write 3.5men/women. This is bcos there is never a human being who is .5 So, your answer will be 3men/women. Again, depending on the dictates, you may need to round off the answer upwardly by writing 4men/women and not 4.0men/women.
from #29 Correction:
#27. 0.67 + 0.33 is not always = 2.00″ I meant to write: 0.67 + 0.33 is not always = 1.00
So, you pre-define the outcome. Depending on what is to be achieved you may wish to have 1.00 or just 1
flag
Peter says:
Another mistake- am tired, after this correction its good night to all.
from #29 Correction:
#27. 1.67 + 0.33 is not always = 2.00? I meant to write: 1.67 + 0.33 is not always = 1.00
So, you pre-define the outcome. Depending on what is to be achieved you may wish to have 2.00 or just 2
#27 – Your maths are wrong. Guess you’re tired and need a rest just like the MMD!!! We need new minds with new ways of reasoning and that is happening next year. Come, join the mighty PF/UPND Pact, it’s never too late.