Tax regime change directive cheers Chamber of Mines

The Zambia Chamber of Mines has welcomed President Edgar Lungu’s directive to the Ministers of Finance and Mines to effect changes to the 2015 Mining Tax Regime by 8th April 2015.

In a statement the Chamber of Mines says it is committed to working with the Government to finding solutions that will allow them to sustain operations,protect jobs,support local communities and contribute to Government revenue.

It notes that from inception President Lungu has been committed to fostering the sustainable operations of the mining companies, as seen through his resolve to guide the line ministries,including the Zambia Revenue Authority on the issue of Value Added Tax Rule 18.

It states that this will help to continue contributing to job creation and poverty alleviation.

The Chamber of Mines says it is committed to working with all stakeholders to put in place a system that will increase revenue to the Government coffers for social and economic development on a suitable basis,encourage investment in the mining sector for sustainability of the industry and security of direct,indirect and induced jobs.

Meanwhile ActionAid Zambia has expressed concern over President Edgar Lungu’s directive to the Ministers of Finance and Mines to effect changes to the current Mining Fiscal Regime by 8th April, 2015.

ActionAid Country Director Pamela Chisanga in a statement says while the urgency with which the president wants to resolve the impasse in the mining sector is appreciated, they are greatly concerned that this directive from the president comes in the wake of receiving submissions from individual mining companies and from the chamber of mines.

Ms Chisanga notes that the President proceeded to issue another directive to effect changes to mining tax regime without any feedback from the relevant ministries on his earlier directive to the Zambia Revenue Authority to engage in dialogue with the mining companies over the VAT refunds and with the Ministry of Finance on the new mining tax regime.

She also notes that the president has further gone on to prescribe the measures to be undertaken, which task should have been left to the relevant technical government agencies.

Ms Chisanga says ActionAid believes this directive not only undermines the autonomy of the relevant government agencies to effectively carry out their duties but is yet another illustration of current government’s inconsistent economic and fiscal policy management.

She adds that such directives can only breed mistrust between the people of Zambia, Mining industry and those tasked to look after the affairs of the nation.

Ms Chisanga has reiterated ActionAid’s call for transparency and accountability in the matter, and that the current situation presents an opportunity through genuine dialogue to develop a robust mining fiscal regime that will result in a win-win situation for the people of Zambia and the mining companies.

She adds that President Edgar Lungu knows very well that Zambia, according to the Mbeki Report on illicit financial flows,is one of the countries with the highest levels of illicit outflows in Africa and that to deal with this, calls for serious leadership and the President has the responsibility to demonstrate this given his various pronouncements on the issue.

Ms Chisanga states that this is a matter that cannot be resolved by unresearched Presidential directives.