Govt urged to remain resolute over mining tax regime

Thirteen Civil Society Organisations have called on government to remain resolute and firm on the new mining tax regime especially as they engage in dialogue with the mining companies.

The CSOs gathered at the Alternative Mining Indaba observe with great concern the arm-twisting tactics by mining companies in Zambia aimed at pushing government to retract the recently introduced mineral royalties.

They are saddened that there are already indications of government back peddling on the new tax laws as intimated by the Commerce and Trade Minister Margaret Mwanakatwe at the on-going mining indaba in South Africa.

They note that the misreporting by mining companies on basic data such as the final destination for Zambian minerals makes it difficult for the country to realise benefits from its natural resources.

The Civil Society Ogranisations say it is therefore commendable that government has revised and simplified the mining tax regime by introducing the mineral royalty tax based regime and have called on all Zambians to rally behind and support government to implement the new tax measures.

They note that if properly balanced with other measures and if well implemented, the new measure has great potential for increasing revenue that is needed for delivery of essential public services and the uplifting of people out of poverty and to reduce inequality.

The CSOs state that it is imperative that citizens support progressive intensions by the Government to finance development through enhanced domestic resource mobilisation and curbing illicit financial flows as pledged by leaders during the just ended AU heads of state summit in Ethiopia.

They have also called on the mining firms to be more transparent and that this should form the basis of any engagement with government because without transparency, it is difficult for the country to trust and appreciate the intentions of the mining companies.

They have since condemned the threats by mining companies to down size and lay off workers.

The CSOs note that these threats have been made by the mining companies over the last 3 years and it is now apparent that the mining companies will continue to issue these threats as long as leaders are not bold enough to put a stop to these threats that have the potential to cause anarchy in the country.

They note that the measures introduced by the government are not intended to stifle growth in the mining sector but to enable Zambia to justly obtain its fair share from its natural wealth.

The CSOs have urged the government to remain steadfast and not to change the current tax regime without a clear basis, stating that doing so will not only be robbing the country of what is probably the minimum contribution mining needs to make to the national treasury, but also set a bad precedence in governance and national sovereignty, given recent introductions and subsequent withdrawal of key statutory instruments that were aimed at regulating the financial sector in Zambia.

The thirteen CSOs are ActionAid Zambia,Caritas Zambia,Centre for Trade Policy and Development,Council of Churces in Zambia,Catholic Diocese of Ndola and Catholic Diocese of Solwezi. Others are Diakonia Zambia,Green and Justice,Jesuit Centre for Theological Reflection,Oxfam in Zambia,Publish What You Pay,Zambia Joint Country Program NCA, DCA, CA and Zambia Tax Platform.