• PRESIDENT Edgar Lungu (in short-sleeve blue suit), with Agriculture Minister Given Lubinda (in hat), admires cattle at the Livestock section of the Copperbelt, Mining, Agriculture and Commercial Show in Kitwe yesterday. Picture by MOFFAT CHAZINGWA (see story on page 2)

By MOFFAT CHAZINGWA and  MILDRED KATONGO –
PRESIDENT Edgar Lungu has cautioned investors and mining houses in particular against engaging in transfer-pricing schemes with subsidiaries abroad and has directed tax authorities to curb the trend.
Mr Lungu said Government is aware that some mining houses have a tendency of engaging in transfer-pricing schemes with the subsidiaries based in countries perceived as tax havens.
He said the practice of engaging in transfer-pricing schemes by some mining houses is depriving the country of the much needed tax revenue and as such the need for this to be curbed.
“I am directing the tax authorities and other Government agencies to ensure that this practice is curbed,” he said.
The president said this yesterday when he graced the 58th Copperbelt Mining, Agriculture and Commercial Show (CMACS) in Kitwe.
Mr Lungu bemoaned the overall minimal contribution to the Treasury by the mining sector even though the country had been mining for more than a hundred years.
He said Government would remain pragmatic in dealing with the mining sector, stressing that his administration will not stand by and let mines close down and render the people jobless on account of depressed commodity prices on the international market.
This is the more reason that Government recently made a bold decision to revise the mining taxation regime which is expected to come into effect in July this year.
“Notwithstanding these measures, my Government is mindful of the demands for our people to seek greater benefits from the mining operations in our country.
“This is the more reason that corporate entities that operate in this country should endeavour to contribute to our national treasury,” President Lungu said.
The Head of State, however, assured of Government’s commitment to pursue a ‘win-win’ situation between mining houses and the country.
As the country seeks to diversify the economy, there is need to bear in mind that the mining sector will, for the foreseeable future, continue to be the mainstay of the economy.
The President stressed the need for dedication by all stakeholders in linking mining to other sectors to ensure optimisation of the development impact.
Government is aware that the mining sector produces inputs for the manufacturing industry and that it is also a consumer of the manufactured products.
He said the utilisation of the country’s mineral wealth should therefore encourage other economic activities that would benefit the general citizenry.
He pointed out that the participation of Zambians in the entire mining value chain was critical if the country is to maximise the benefits from the sector.
Government is enhancing the necessary policies and regulations to promote effective participation of the people in the mining supply value chain in order to create even more wealth.
The President, who expressed happiness with this year’s show theme, ‘Maximise Development to Sustain a Strong Economy’, called for hard work and innovation by the citizens in order to achieve this.
“Sustaining a strong economy entails diversification of the economy and this begins with identifying key productive sectors that can contribute to the growth to sustain it,” he said.
Mr Lungu said there is need to maximise development in agriculture in order to ensure a strong economic contribution from the sector.
He reiterated Government’s commitment to take advantage of the improvements in the agriculture sector to act as a catalyst for accelerated economic growth.
In order to accelerate the diversification of the agriculture sector, Mr Lungu said, Government has embarked on the promotion of value chains for a variety of agricultural products starting from primary production to value addition.
In diversifying agriculture, Government is working on measures to promote the sustainable utilisation of wetlands and in this regard, is targeting 17, 000 hectares of land under irrigation by 2016.
It is Government’s intention to provide inputs to more than one million farmers and cover a variety of crop in the 2015/16 agriculture season.
Copperbelt Show Society chairperson Bill Osborne urged Government to create more revenue streams rather than increasing taxes for existing stakeholders.
He said one such idea is to vastly increase the hydroelectric generation through both small and medium sized projects.
Meanwhile, Barclays Bank emerged this year’s overall best exhibitor after beating 100 other competitors who participated.