Calls for re introduction of the windfall tax in Zambia, Africa’s largest copper producer, have heightened with some opposition political players urging government to revisit the regime at the height of the copper prices on the international metal market.
Newly formed United Progressive People leader Mr Saviour Chishimba said it was folly for the government to continue ignoring calls for the re introduction of the windfall tax regime when copper had reached its highest peak of USD 9,000 per tone on the London Metals Exchange which could be utilized in developing infrastructure and boost the social sector in areas of mining activities.
Mr Chishimba a former Patriotic Front parliamentarian and a former member of the Parliamentary committee on estimates said it was time the government reconsidered the calls for re-starting the windfall tax because it was the surest way of generating resources to meet various demands. He said that “We pushed for the introduction of windfall tax in 2008 because we realized that it was time for Zambia to benefit from its on mineral wealth but the government thinks otherwise and believes that we can still make enough money from variable taxes, which are not enough because miners pay a fraction.”
According to Mr Chinshimba, unless the government realized that such opportunities once come once, Zambia’s bid to develop the welfare of its 12 million populacy risked going to waste without reconsidering such rare opportunities.
Mr Chishimba said that “We labored to ensure that the law which reviewed the mines and minerals Act was amended and brought in deliberate policies like windfall taxes because we realized that the mines were making enough money while the country was also going to benefit USD 415 million annually in returns from mining activities.”
Former Kalulushi mayor Borniface Mwalilino said it was unfortunate that the government has remained adamant to advise to revisit the windfall tax arguing that it was the surest way to generate money from the country's mineral wealth.
Mwalilino, a former miner under ZCCM argued that unless the government reconsidered bringing back the windfall tax, the country's wealth in the mining and copper industry will be wasted at the expense of people that needed it. He called for dialogue among economic players to develop the country using such resources which initially benefited the people in mining areas under ZCCM.
Opposition Alliance for Democracy and Development leader Charles Milupi echoed Chishimba’s sentiments arguing that Zambia, has by waiving the windfall taxes, failed to rake in revenue that the country needs to meet infrastructure development.
It was the government’s obligations to ensure that people’s desires to benefit from their country’s mineral wealth was now and urged the government to reconsider the matter as it was not too late to retract the earlier decision for a waiver.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
