. Magande
By CATHERINE NYIRENDA? –
OPPOSITION National Movement for Progress (NMP) president Ng’andu Magande hoped that the new mining tax system Government intends to introduce next year will increase revenue collection.
The current tax regime for mines has been redesigned for more equitable sharing of the mineral wealth between the Government and investors.
The new tax regime will result in additional revenue estimated at K1.7 billion from the mining sector in 2015.
Currently, the mineral royalty is six per cent across all mining operations, but the proposed terms have been divided, with mines operating underground mining attracting eight per cent mineral?royalty.
The former Finance minister in the Levy Mwanawasa administrations said the move was welcome as long as Government puts in place more monitoring mechanism to ensure prudence by the mining companies.
“I am not familiar with the restructured mining tax system, but I hope it’s not controversial like my windfall tax and I hope technocrats did their homework before the country is left yawning with holes,” he said.
He welcomed Government spending in infrastructure development but advised that the developments should benefit Zambians also unlike the trend where foreigners are mainly benefiting.
“You will notice a road has been done up to Chiawa but most people owning lodges are foreigners, contracts in construction of roads are also given to Chinese at the expense of Zambians,’’ he said.
Finance Minister Alexander Chikwanda told Parliament during the presentation of the 2015 National Budget on Friday that the taxes were categorised according to the mining systems as opposed to the current situation where taxes had been uniform.
MMD Lunte Member of Parliament Felix Mutati said the Budget did not give a clear stipulation of how it would deal with issues of poverty and unemployment.
Mr Mutati condemned the move by Government to reduce expenditure on health and education.
He urged Government to channel expenditure in areas which could be able to stimulate growth.
