Secretary to the Treasury, Likolo Ndalamei says government share in profits from the mining sector is expected to rise in the next few years.
This follows the conclusion of negotiations with mining companies to move to the new mining tax regime.
Mr Ndalamei said although the windfall tax was lifted, government still earns a share of the profits that the mining companies make through variable profit tax.
He said this in Lusaka Wednesday during a press briefing with IMF Mission Chief for Zambia, George Tsibouris.
Mr Ndalamei said a wrong impression has been created that mining companies do not contribute taxes to the treasury.
He said Mining companies are currently paying mineral royalty, company tax and variable tax on super profits.
He also announced that the committee constituted to audit mining companies, will establish if they do pay income tax to the government.
[ ZNBC ]
Next few years? Tax money from the mines need to increase today …
But he hasnt mentioned any numbers here. The minral royalties are currently 0.6 %, which means that for every 1000 million dolllars (one billion) prifit that the mining companies make the zambian govt only gerts 6 million dollars. We know that the mining companies are paying some kind of tax, the debate is been on HOW MUCH they pay, its too little at the moment.
Then the figures of “a few years” can mean 20 or 40 years, its meaningless! Come to think of it , what does MMD have to loose by going back on all their previous deals and slaping a higher tax on those guys? They might grumble but at the end of the day they will stay cause they are greedy and money oriented, and the country will have more money, and its politically a very profitable move
@ #2 Cpt Solo
Mineral royalties are at 3%.
OUR COPPER IS WAS EXPECTED TO LAST ANOTHER 20YEARS.
BUT CHINA HAS BROUGHT NEW FASTER TECHNOLOGY AND THEY WILL BE ABLE TO SUCH ALL MINERALS OUT AT TWICE THE SPEED.
MEANING OUR COPPER HAS LESS THAN 10YEARS LEFT.
ZAMBIA HAS BEEN GROWING AT A STEADY RATE AND OUR COPPER ORNAMENT IMPORTS ARE ON THE RISE.
IN ORDER TO MOVE FORWARD AND DEVELOP ZAMBIA WILL NEED OVER THE NEXT 20YEARS TO INVEST IN TECHNOLOGY AND INDUSTRY WHICH WILL SEE ZAMBIA NEEDING THE USE OF COPPER ARTICLES SUCH AS CATHODES, FIBRES etc
THIS WILL NOW MEAN THAT UNLESS ZAMBIA CONTROLS THE EXPORT OF ITS COPPER IMMEDIATELY AND IMPLEMENTS WINDFALL TAX FOR MAXIMUM PROFIT OR ENGAGES MINERS TO BUILD INDUSTRIES AND INFRASTRUCTURE. AT THIS PACE WITHIN 15 YEARS ZAMBIA WILL BE ON ITS KNEES
IN RELATED NEWS IT SEEMS THAT INVESTORS
IN RELATED NEWS IT SEEMS THAT INVESTORS ARE SMUGGLING COPPER OUT OF ZAMBIA AS A WAY OF AVOIDING TAX AND SHOWING THAT THEY HAVE DUG LESS COPPER.
THE TECHNOLOGIES AS IS OBVIOUS FROM COLLUM MINE WHICH WAS READY TO TAKE A BREAK BECAUSE TOO MUCH OUTPUT ARE ENSURING GOV’T REMAINS BLIND TO THE DOUBLE IN OUTPUT WHILST INVESTORS SMUGGLE.
IN LAYMANS TERMS: ONCE OUR COPPER IS FINISHED, ZAMBIA WILL BE AT THE MERCY OF US,CHINA & CHILE. SUCH COUNTRIES HAVE LARGE COPPER RESERVES AND WHENEVER THEY FEEL LIKE THEY CAN SMELT AND FLOOD THE MARKET IN ORDER FOR PRICES TO DROP.
NOW AS YOU KNOW OUR GOV’T IS FULL OF BEGGERS AND THEY DON’T HAVE THE GUTS OR INITIATIVE TO TAKE SUCH MEASURES. WHAT THIS MEANS FOR ORDINARY ZAMBIANS IS THAT THE DOLLAR WILL BE ATLEAST K12,000 AT FIRST AND RISE STEADILY.
25KG MEALIE MEAL WILL BE ATLEAST K120,000 IN A SITUATION WHERE WE HAVE BUMPER HARVEST
FUEL WILL COST AROUND K18,000 A LITRE
NOW WE CAN ALL SEE WHAT THE EFFECT WILL BE ON LIFE AND BUSINESS IN ZAMBIA
HOW COME OUR LEADERS DON’T CARE?
ACTUALLY MANY DO, BUT NO GUTS.
OTHERS THAT CAN DO SOMETHING DON’T WANT TO BECAUSE IF ZAMBIA ENDS UP ON ITS KNEES, THEY AND THEM ALONE WILL ENJOY FOR A VERY LONG TIME.
AS CITIZENS WE NEED TO TAKE CONTROL OF OUR LIVES, OUR LAND AND OUR COPPER.
I WILL LEAVE IT TO SUGGESTIONS ON WHAT PETITIONS AND MOVEMENTS WE CAN FORM IN ORDER TO SEE IMPROVEMENTS WITHIN NEXT 2 TO 3 YEARS.
AND DON’T SAY VOTE FOR WHO..BECAUSE THAT IS ACTUALLY THE BIGGEST PROBLEM.
POLITICAL CANDIDATES MAKE PROMISES TO EVERYONE AND WHEN THEY HONOR THEM, MANY ARE LEFT HURT
SHOULD A PRESIDENT REALLY HAVE ALL THAT POWER TO CONTROL OUR LIVES MINUS OUR SAY.
LPM MHSRIP BROUGHT ABOUT THE WINDFALL TAX AND WE WERE ALL HAPPY, THEN WITHIN TWO MONTHS OF RB IT WAS GONE JUST SO HE CAN PLEASE INVESTORS.
THAT IS NOT RIGHT.
ESPECIALLY NOT AT THIS TIME WHEN COPPER IS RUNNING OUT.
IF ZAMBIA SHOULD KNEEL, LET IT KNEEL WITH COPPER IN THE GROUND
SO THAT WHEN WE STAND, WE WILL BE THE WISER
SO THAT WE IN ZAMBIA CAN ALSO USE THAT COPPER FOR ALL THE REASONS THAT CHINA, INDIA, RUSSIA, US ARE COMING TO GET IT FOR
INFACT WE STAND TO EARN MORE IF WE SIMPLY MADE WHAT THEY WANTED IT FOR AND SOLD THEM THAT INSTEAD
ABASH EXCESSIVE PRESIDENTIAL POWERS!
ABASH POLITICS OF PROMISES!
VIVA ZAMBIA! VIVA COPPER!
Simeza, does collum mine do copper????
I think bloggers should have their ‘facts’ checked before pressing the Enter button on their keyboards.Ba Cpt Solo @#2, you are living in the past were mineral royalties are concerned.
Mining Companies do not pay Income tax,why is Ndalamei tying to mislead the public.Has he forgotten the Development agreements.Zambia Breweries pays more tax than all the mines combined.
10, I have not heard any grumble about high tax from Zambian Breweries. Maybe you meant to say that beer drinkers pay more tax than all the mines combined?
POSITIVIST???
ALL YOU READ IS COLLUM MINE?
HOW ABOUT WHEN I SAID CHINA HAS BROUGHT NEW FASTER TECHNOLOGY AND THEY WILL BE ABLE TO SUCK ALL MINERALS OUT AT TWICE THE SPEED