FINANCE and National Planning Minister Situmbeko Musokotwane says that although the Patriotic Front (PF) publicly opposes government’s revised policy on taxes in the mines sector, the opposition party is on record stating it prefers the current policy.
Dr Musokotwane has said that it is surprising and contradictory for the PF to give an impression in public that it opposes Government’s mining tax regime and yet this is what the party wanted.
Dr Musokotwane said this in Lusaka yesterday during a recording of ‘Culture Remodelling’, a television programme under the theme ‘Health Check on the Zambian Economy’.
He said that in 2008 the PF president Michael Sata wrote a letter to then Finance Minister Ng’andu Magande stating that the PF opposed the windfall taxes that Government had introduced.
Dr Musokotwane said that it was surprising and contradictory of the PF and its ally, the United Party for National Development (UPND), to now oppose Government’s decision to review the mine tax regime accordingly.
“The UPND/PF is amazing and surprising to condemn Government for removing windfall tax when there is evidence that Mr Sata had written a letter to my predecessor [Ng’andu Magande] opposing the decision.
It is strange that these people are on one hand making political pronouncements before people when it suits them and on the other they quietly support Government,” he said.
[pullquote]In the letter dated March 19, 2008 to Mr Magande, who was then minister of Finance, Mr Sata expressed concern at the introduction of the windfall tax, saying that this could stifle growth in the sector and cause job losses.[/pullquote]
Dr Musokotwane cautioned Zambians against taking such leaders seriously as they are showing inconsistence on matters affecting the nation.
He said the current taxation system is aimed at attracting more investment into the country and that it is in tandem with the global taxation methods applied in several mining countries across the globe.
Dr Musokotwane said that Government still collects windfall taxes from profit made by the mining firms in the country. In 2008 Government scrapped windfall taxes on revenue for mining companies following reduced copper prices on the world market.
In the letter dated March 19, 2008 to Mr Magande, who was then minister of Finance, Mr Sata expressed concern at the introduction of the windfall tax, saying that this could stifle growth in the sector and cause job losses.
Dr Musokotwane said it is, therefore, shocking that the same opposition party is now attacking Government for scrapping the windfall tax on revenue in the mining industry.
Meanwhile, Dr Musokotwane has said that Zambia’s economy is experiencing an unprecedented growth, which will soon have positive trickle-down effects to the country’s population.
He said Zambia’s economy has remained good and that global financial experts have cited the country as one that has emerged from the global financial crisis virtually unscathed.
He said the expansion of the economy is evidenced by the growth in the mining and construction industries, as well as in the recently announced all time bumper maize harvest.
“We are very confident that our economy will continue to expand,” said Dr Musokotwane.
Dr Musokotwane said the mining industry is this year expected to record higher production because of the newly opened Luanshya, Lumwana and Munali nickel mines.
He also said that the change in the national budget cycle effected last year has accelerated infrastructure development and other capital projects.
[Zambia Daily Mail]
