By MAIMBOLWA MULIKELELA –

DELEGATES  to the 5th Zambia Alternative Mining Indaba (ZAMI) have called for the reintroduction of the Mineral Revenue Sharing Mechanism to retain 10 per cent of the taxes collected in host areas.
The delegates said in Lusaka that this would enable the local communities to benefit from the mineral resource extraction, ultimately empowering the communities where mining companies operate from.
ZAMI 2016 chairperson Cleophas Lungu said on behalf of the other delegates that, the Mineral Revenue Sharing Mechanism would ensure that the local communities benefit from mineral resource extraction.
Father Lungu said the Government should also establish and operationalise a mineral resource account aimed at improving transparency and accountability in the mining industry.
Fr Lungu who is also Zambia Episcopal Conference (ZEC) Secretary General said the Government should enact legislation that would compel multinational corporations to report their business activity in the country aimed at curbing illicit financial flows.
This will compel the disclosure of beneficial ownership information in the extractive sector and provide for government to government exchange of tax information that is publicly accessible.
This is contained in a statement issued in Lusaka.
“The delegates at the indaba continue to note with concern that Zambia is said to be losing an estimated US$3 billion annually in illicit financial flows,” he said.
Fr Lungu said the significance of illicit financial flows cannot be over-emphasised as US$3 billion lost annually is approximately K36 billion, saying that illicit financial flows in Zambia was equivalent to 70 per cent of the national budget.
He said a platform for all stakeholders should be established for the development of a mining tax regime that was stable, progressive and seals the loopholes of illicit financial flows.
Fr Lungu said there was also need to review tax incentives given to mining companies, especially those proven to engage in tax dodging tactics.
The indaba was attended by civil society organisations, faith based organisations, academicians, development partners based in Zambia and strategic partners from Kenya, Ghana, South Africa, Uganda, Mozambique, Zimbabwe and Australia.