Former Chief Government Whip Steve Chungu says the New Dawn Government is contradicting itself by attempting to borrow money from the International Monetary Fund (IMF) when it is under taxing mining companies.
Mr. Chungu, the immediate past Luanshya Member of Parliament, said Zambia has the potential to get more money from mining taxes compared to the amount it wants to borrow from the IMF.
The Luanshya based politician and business executive said the Government should reconsider the waiver on Mineral Royalty Tax in order to earn more from mineral resources.
Mr. Chungu said the statement by Finance Minister Situmbeko Musokotwane that mining royalties are being deductible from income taxes to reflect a measure of both incremental and aggregate norm values were unrealistic.
“Zambia is the only country in the whole world that has opted to borrow money while giving away its sovereignty. Zambia is giving away its God given rights over mineral resources. The money that should have been collected in the form of Mineral Royalty Tax is more than what the country wants to borrow in the name and term “Best practices”. Yes it is not wrong to borrow or copy the so called best practices but we should understand that the countries we are copying from have different social needs. Countries like Chile that we want to copy from have different economic needs, different cultures, different traditions, different races from ours, different tax collection avenues and many other different things from ours,” Mr. Chungu said.
“Mining has been going on in this country for a long time now and we have never seen the so-called investors declare profits before. How sure are we that this time around investors are going to declare profits in which the Government can get taxes? We know that these investors will always sell their copper and other un-declared minerals using their offshore companies below the London Metal Exchange price. The Government should reconsider the waiver on Mineral Royalty Tax in order to leave a breathing space for the common Zambian. Can you imagine a retiree, who owns a simple house being followed by the Zambia Revenue Authority (ZRA) for the rental withholding tax. This has become a common feature now with the presence of ZRA officers in our compounds,” Mr. Chungu stated.
He added:”I believe we can do better if we can go back to the drawing board on Mineral Royalty Tax and give back that which rightfully belongs to the people of Zambia who are being over taxed. Zambia can earn more money from mining taxes compared to the amounts the Government wants to borrow from the International Monetary Fund (IMF).We are inviting the IMF to be administrators of this country by borrowing from them.”
Mr. Chungu warned the New Dawn Government against dealing with the IMF.
He said there has never been a country in the World that has improved after dealing with the IMF.
“We don’t seem to have learnt from our previous relationship with the IMF. There has never been a country in the World that has come out to be a better country after getting into a relationship with the IMF. We are going back into another era of colonisation by the western world and other rich countries. Some of these international organisations and rich countries don’t mean well and they have never meant well. I cry for my Zambia, your Zambia, my country, your country and together with our country,” Mr. Chungu concluded.
Minister of Finance and National Planning Dr. Situmbeko Musokotwane last week told Parliament that Zambia needs the IMF assistance.
Dr. Musokotwane said the IMF alongside other international bodies can help to broker a deal between the Zambian government and the creditors or those that the government owes.
In a ministerial statement, Dr. Musokotwane said the intervention from the IMF will enable the Government to get onto an IMF program that will make it possible for Zambia to access long term concessional funding in future.
Then why didnt your PF collect this tax and settle the debt by themselves,cos remember PF is the one that took all these debts. Besides, If what you are saying is true,then you guys didnt have to borrow either, cos then you wud ve just used the collected taxes from the mines to build your claimed roads,bridges and malls. Why didnt you yourselves do that Mr.smart Baboon?
Anyone can cry,including murderers, but your cry definitely is that of an economy murderer crying because now he cant steal anymore. Your tears are not genuine sir,you simply just mocking and laughing at the poor Zambians. in short ,taking them for fools and you dont deserve their sympathy. Infact if i was president,i would come to all you former PF officials grab everything you ve to settle atleast half of the debt, Or whenever people see u on the streets they must take your choes or jacket or even better beat you up for getting them into a debt trap and then mocking them on social media.
We tried to tell them this but hh and his minions have very swollen balls that they won’t listen to anyone. They all suffer from bola bola
The fixation on the IMF is almost as if it is the panacea to all the incompetence, theft, swindling, embezzling and other ills going on around. Failure to pay back debt and senseles contraction of said debt in the first place is at the heart of our slippery slope. I agree with ex-Greek Finance Minister when he suggests to avoid the IMF.
You can’t raise taxes when the investors have not arrived yet. ONLY when investors have settled in AND are making substantial profits, THEN you can increase the tax burden. Otherwise these investors just won’t come!
Tell me, Stup!d KZ, why did that totally incompetent Edgar China Lungu not raise those taxes in the ten years you were in power? The ONLY thing you managed to increase was the country’s DEBT BURDEN!
Tell me, Stup!d KZ, ??
YOU CANNOT ASK THIS 1MP0STER ANYTHING
HE HAS NEVER ONCE ANSWERED OR GIVEN A SOLUTION BUT JUST POSTS DEROGARTARY COMMENTS
THAT IS HIS JOB
#4 which investors are you waiting for? Kalimbila, Lumwana, Kansanshi, Lubambe, Chibuluma, NFC, CCS etc have been here for some twenty years. They keep on using the excuse of operating at a loss and yet they have continued to mine. They will act like Glencoe after making profit they start looking for a way out. Brother we are always on the losing end.
#5 It’s malicious to ask why the PF didn’t do what Kaizer is suggesting. The reason why people replaced PF with Upnd, people were assured that these guys were more intelligent and would better than their predecessors. Alas, it’s like jumping over urine only to land on a heap feces.
Suddenly, everyone is a mining tax expert.
That is because they are lazy buggers looking for the easy way out…………
Everyone wants to collect more taxes from the mines , instead of looking at other industries , innovations and revenue streams…….
Look at ideas of improving industries like tourism, media, agriculture and manufacturing instead of wanting to all jump on the
” tax the mines more ”
Bandwagon………
The best comment of this year so far;
#5 It’s malicious to ask why the PF didn’t do what Kaizer is suggesting. The reason why people replaced PF with Upnd, people were assured that these guys were more intelligent and would better than their predecessors. Alas, it’s like jumping over urine only to land on a heap feces.
Above article is baffling.
“We are going back into another era of colonisation by the western world and other rich countries. Some of these international organisations and rich countries don’t mean well and they have never meant well.”-LT
“The Anti-Corruption Commission (ACC) has seized properties worth over K22 million belonging to Former Lusaka Province Minister Bowman Lusambo, a property that is suspected to be proceeds of crime.”-LT
“Washington CNN —
In an extraordinary move, the State Department is pulling the US ambassador to Zambia after the president there objected to his harsh criticism of the government’s record on corruption and gay rights.
Recalling an ambassador is rare, especially when an ambassador is arguing for American values abroad.”
It’s not just a matter of getting more money in mining taxation; no less important is how the money is spent. Did the PF government care about how public money was spent?
I can not read such utterances by these hypocrites…this clown Stephen Chungu was in Lazy Lungu’s govt from 2015 PF never touched mining taxes in fact the mines got away with it as the govt owed them VAT plus most PF senior officals were suppliers to the mines, increasing taxes would have affected their bottomline. PF were good at saying you can not kill the Goose.
Here is another reason why there should be no mining in Lower Zambezi NP …diversify to agriculture and energy production.
Not even collecting a Windfall Tax and instead plunging the taxpayers into debt was always about corruption, no matter how they dress it up as ‘good governance’ or ‘best practices’.
The fact is that we have the copper, and they do not. And not only do they need Zambian copper, they don’t want to pay for it, and don’t want to pay taxes on it.
And with neoliberal governments, they get whatever they demand. The IMF/WB is the same as the mining companies – same owners. Google: wolfensohn rothschild inherited economicsvoodoo
Typical of us… you find it in football.. the assistant coach canvases for the top job and finally the head coach is fired. His deputy takes over. Losses follow and the excuse is that the former coach had left a lot of problems. My God isn’t that the reason you were appointed.
# Tarino Orange
# Deja Vu
# Independent Observer
# Dr Sichuwa Sichuwa
# General Kanene
You guys should come together and form an opposition party…….
Zambia needs fresh blood. I had so much hope in HH, and he just appears to be confused…..
I think he still does not believe that he is the president. We were promised that UPND has intelligent people. From what I see, it was all hype………
IS CALLED HAVE FAITH
THE MAN AT THE TOP IS ALONE RIGHT NOW
THERE ARE MANY OFFICIALS WHO ARE NOT PREFORMING AND THEY ARE BEING WATCHED
THEY WILL GO EVENTUALLY
THERE IS NO INSTANT REMEDY FOR THE DAMAGE THE LAST GOVERNMENT DID
GET THAT IN YOUR HEADS
AS FOR THE IMPOSTER ONLY DERANGED PEOPLE WILL TAKE NOTE OF HIS UTTERANCES
IS HE NOT SWIMMING IN SEWRAGE ?
This is rather too late for any clarification as the country seem to have already embroiled itself into another SAP/HIPC phase2, don’t argue if you were not there
Only this time we re a bit lucky with less AIDS and subsiding coivid
When shall we ever learn how tofight and win these wars? Where’re our great prophets?
#17 ZCCM… Thanks but unfortunately I only comment as an observer, politics is not for me… last voted in 1996.
10 years as Luanshya MP and all This worm Chungu did was buy TVs for police stations. He owes employees money that he refused to pay because he lost re-election. SHUT YOUR TRAP FOOL!!!
Chungu did was buy TVs for police stations. He owes employees money that he refused to pay because he lost re-election. SHUT YOUR TRAP.
Good Adviser who wants to advise others when they kept running to IMF when they
Were in power only to be rejected.
UPND is in this mess created by PF.
TIKKI @ 18
Thank you for admitting and in your own words: “THERE ARE MANY OFFICIALS WHO ARE NOT PERFORMING AND THEY ARE BEING WATCHED “
I say this because … you guys or UPND spent years boasting that you were the party of intelligent people. Now UPND is here and looks like a bunch of headless chickens without a clue and keeps spending time and energy blaming PF on each tiny thing. You were not voted to complain but to fix the problems. Besides, HH bragged that he was the, Bally To Fix It.
tikki
Stop exposing your dullness. This is what happens when you comment and blog without thinking
” What do you the President is all alone at the top ??
I have never heard of this f00lishness in my life. Ati… the president is all alone at the top. Is this the new level of excuses you guys have reduced yourselves to? He applied for the job and this is not the time to be complaining that I am at the top all alone. He boasted that he is an accomplished businessman. He understands Zambia’s economy and he was here to fix the problem. Now he is struggling to get the IMF loan that he also boasted that he managed to get in a month. As a result, he is now begging European diplomats to help him.
Tikki 18^^
Stop exposing your dullness. This is what happens when you comment and blog without thinking
” What do you the President is all alone at the top ??
I have never heard of this f00lishness in my life. Ati… the president is all alone at the top. Is this the new level of excuses you guys have reduced yourselves to? He applied for the job and this is not the time to be complaining that I am at the top all alone. He boasted that he is an accomplished businessman. He understands Zambia’s economy and he was here to fix the problem. Now he is struggling to get the IMF loan that he also boasted that he managed to get in a month. As a result, he is now begging European diplomats to help him.
What a dull bunch you all are Obviously all employees and never had experienceemploying people
If you had you would have understood the logic behind the statement
but wasting time going into this will still go over the top of yourv heads
what you see in personel is not what you always get
Tikki………
Dude, you really have an empty head. Is this the blame games you will now use that – ( THE MAN AT THE TOP IS ALONE RIGHT NOW. ). Is this not a confirmation that the presidency is too much for HH
@17 I think you are right. When you read some of the critiques posted here you see very brainy alternatives to what is on offer on the scene. Read the Gaddafi guy. Zambia needs an opposition that is resolute and organized. The diaspora provides it
HH is proving to be a no plan leader. There’s no difference between him and Lungu, only that Lungu’s bank account was smaller. But the opposition is even weaker and clueless and hypocritical with very little clout.
18………….. Tikki
The dick**d is you. Where in the world do you hear someone say the president is there all alone. You should have read your comments before posting it A wise man always accepts his mistakes. Frankly, you are one dull person who turns up every day on Lusakatimes to the tour of uselessness. We have very intelligent people who post comments but still respect other people’s points of view. All you want is to demean people and pretend to be intelligent. Guess What? People can read between the lines. Next time read your comments 3 times before you post them.
HH is at the top all alone. What?
I am posting this as person who supported HH and I have defended him on lusakatimes, but lately I have to admit there is too much lies and excuses coming from UPND
Tikki @ 25
Go and have a nap, meditate or something like that. You are driven to Lusaka times not to add value. Take this criticism from others as good medicine to assess and evaluate your state of mind. Your propaganda has just gone too far. You are sounding like Vladimir Putin from Russia.
ZCCM @ 17
I agree with you that we have very few Intelligent and Analytical Minds on Lusakatimes. Apart from Dr Sichuwa who writes good articles, I think the 4 people you have listed **Tarino Orange, ** Deja Vu, **Independent Observer, **General Kanene…… all fit the good bill.
17## ZCCM
Come On!! You forgot my Mbuya. The one and only KAIZER ZULU on that list of yours….. Kikiki Kikiki Kikiki …
NO WIONDER WE IN A MESS CONSIDERING THE ABOVE NAMES
#31 TIKKI PF yali tutoba and your Upnd baletushonaula
Very few people in any walk of life, are brave enough to take a different path & become pioneers. Most of us would rather follow what others have always done – albeit wrong. It appears that borrowing from the IMF – the most punitive lender ever, is a mantle of honour leaders of struggling economies aspire to acquire at neckbreak speed. Are we seeking to belong in a “club”..at our expense? Ofcourse, we all know borrowing drives economies, however, it has to be within affordability. Are there no other lenders in the world, or are we stumped??
#plant a tree please.
Deja Vu – People voted out PF because of rampant corruption among other things …yes I said because you wont instead you will sugarcoat it..why do you even comment when you dont even exercise your right to vote even there in Zambia even proudly stating that the last time you voted was 1996 like me when I was in Zambia.
You have no shame at all and people mentioning PF is because this man was in PF cabinet in 2015 stayed on as MP till 2021. Plus you have no understanding of how national debt works given that the you are giving examples of a football coach leaving..so are you supposed to ignore the fact Stephen Chungu and his govt are part of the reason we are in debt?
#34 Tarino even if you don’t belong to the board you can contribute as an employee .. Same here, Zambia is my country, I pay my obligations so I have a right to comment. Right now there’s no quality in the political arena to choose from…they may be lawyers, billionaires but I am not impressed.
Former Chief Government Whip Steve Chungu, your article is well articulated, the New Dawn Government needs to learn against dealing with the International Money Fund. Zambia is certainly getting into another era of colonisation by the western world and other emerged countries. Some of these international organisations and emerged countries do not care about Zambia or any African country. If they cared, the current emerging countries could have been on par with them. New Dawn Government take heed of this article and consult carefully please.
Mr. President, you are a visionary leader, and I hope you appointed a strong and resourceful team that shares your vision to sustainably develop Zambia. It is vital that you have a capable and performing team on your side. I also hope you have a performance management system in place – is a mechanism for tracking the performance of employees consistently and measurably. It allows the company to ensure that employees and departments across the organization are working effectively towards achieving the business’ strategic goals. Those who fail to deliver the goals set, must willingly resign or their names be written in a book of shame and be fired. Be the no nonsense president as everyone has been placed in their positions to deliver for the country and its citizens.
@ ThinkingoutsidetheBox
Most on here wont understand your reasoning
they only interested inter party politics
and not the welfare of zambia
HH is well aware of his underpreforming ministers and party cadres speaking without authority
its going to change be rest assured
Anyway we will have to put up with the S*h1t and theories on here for the next 4 years
How tiresome
It is not easy for the UPND team to put things straight from the lungu mess…….
Remember, the judicial system was corrupted and geared to mostly target opposition,
The police was controlled by caders …….
The ministries were all business seeking adventures for PF………….
Councils were not performing their civic duties ………
Trading places were controlled by caders…….
That cess pit that was zambias governance systems will take more than 2 years to sort…….
@Deja vu: You are such a waste of your fathers sperm! You keep on arguing here like you make sense when all you say is nonsense, Listen, we know that you are a tribal hardcore Bemba and will die blindly supporting your tribe. This is why i say Zambia shd never,ever make a mistake of voting a Bemba into power again becos of tribal minds like Deja Vu, a tribe that wants to hold the country at ransom. Clearly your arguments are not meant to make sense but to simply distabilise the country. You ve no patriotism for our Mother Zambia iwe chi Kasai. No wonder you lasted voted in 1996 when u crossed into Zambia from Buji mayi. Everyone can see here that u ve no heart for Zambia at all but to see all bad things happening to Zambia to save your tribe foreign foool. I will personally depot you…
De javu: Behave! otherwise when i come there you ll be my first project on the agenda-find you and tune you and if not lucky i will dump u at Kasumbalesa.
Well espoused Mr Chungu.
If Zambia can’t extricate itself from the proverty gripping it at present, it never will. It should be reaping the benefits of buoant netal prices. That extra cash it can rake in should go into a reserve fund and not used for consumption. Asian country without the natural resources if Zanbia are doing much better. Do you remember in 1964 when Zambia’s GDP at independence was higher that that of South Korea! Guys, we need to pull together with a sense of purpose and dedication.
#41 Vishal . You are the only who has said the real thing. Why do we have to run to the Chinese or the IMF to solve our problems. When the colonialists were running this country they never got loans and instead used part of the money generated in this country to develop other countries including England. What went wrong. Even with oil an African country can’t match the Arab progress. What is wrong with us?
#39 I can not engage in such uncouth exchange. It’s regrettable that somehow someone showed you how to use the phone or computer. Please be civilized.