The civil society in the country has proposed the reintroduction of windfall tax for mining companies in the 2013 budget.
The CSOs argue that there is need for equitable benefits from super normal profits enjoyed by the mining companies during periods of very high copper and cobalt prices.
This is contained in joint submission on tax and non-tax proposals for the 2013 national budget to the ministry of finance.
Reading out the submissions in Lusaka today that were presented to the ministry of finance yesterday, Civil Society for Poverty Reduction programmes manager Isabel Mukelebai said the re-introduction of the windfall tax will result in increased revenue for poverty reduction programmes, investment and national development.
Ms. Mukelebai says windfall and variable taxes are not mutually exclusive and as such can be implemented side by side.
The CSOs that made the collective submissions include the Jesuit Centre for Theological Reflection (JCTR), the Civil Society for Poverty Reduction (CSPR), the Centre for Trade Policy and Development (CTPD), Action Aid and PELUM Association.
Others are the Council of Churches in Zambia (CCZ), the Economic Association of Zambia (EAZ), Caritas Zambia, the Zambia Civic Education Association and the Platform for Social Protection Zambia.
And emphasizing the need to re-introduce the windfall tax, CTPD executive director Savior Mwambwa says on top of the existing taxes, it is possible to have a windfall tax designed in a way that works for both small and big mining companies.
Mr. Mwambwa has since noted the need to create an environment for an open dialogue where government and all stakeholders can discuss the merits and demerits of windfall tax.
The CSO’s have also proposed for a reduction in the rate for the current pay as you earn income bands, among others.
Ms. Mukelabai says the reduction will provide further and equitable relief for normal employees and thus encourage incomes for accessing basic needs and services.
We are also three years behind on this policy. What worries me is the quick change of heart by government after signing to hell and back that they would re-introduce the tax. The window of opportunity to benefit for such a tax is closing fast as the global economy slows down. Experts are saying that the slow down in USA will take longer to recover from, EU has problems and China is slowing down. if we have to benefit from this tax we need to do it now
these same chaps said MMD gov seemed to be getting kick back from the mine owners for them to maintain a no w fall tax status. seeing that there will be no change to this status, does it follow that PF gov is also getting kick backs
The PF government promised to re-introduce the windfall tax among many other things. I voted for them knowing they were going to implement what they promised the people. Mining is our major economic activity and so, the govt needs to implement taxes that will give relief to the few working class. If only we can apply good mining taxes, we can then diversify our economy by boosting other sectors like agriculture, manufacturing, etc in order to shift our dependence on mining. This will actually put more money in the pockets & create more jobs and broaden the tax base. When copper prices fall, we will not have economic hiccups because other sectors will absorb the shocks. I hope the govt will have a listening ear.
Increased mineral royalty is just ok
we want taht windfall tax incuded..tell the kolwestans we need Zanbia to be developed too..
We don’t need windfall taxes. We need to increase our share in these mines. It is not right for an economy to depend on windfall taxes.
do we have the money
#3 what you have said makes sense. The truth of the matter is that the mineral resource will one day run out (Depleted). The time to benefit from these resources is now and not in years to come. Mind you the developed countries will always stock pile the minerals in pure form and we shall be left with nothing to work with. That being the case, we shall pay heavily to gain acquisition of the same miinerals. As an example, the USA is holding on to most of the scrap metal they have in the country. They are not exporting it to other countries. The same goes for copper, they are holding on to it in pure form as scrap metal. Let’s do the right thing now. One Zambia One Nation.
Yes introduce windfall tax, why should we not benefit from our own resources, Zambia is a very rich country….mining royalty is too low. This government should thrive to reduce the cost of production to industries though; there is still an energy deficit this needs to be improved, need to improve transport links, no consistent policies on labour and mining etc.
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