Q FM Africa's Modern Radio
CCZ General Secretary Reverend Suzanne Matale
The Council of Churches in Zambia (CCZ) says it regrets the decision by the government to reverse the 2015 Mineral Royalty Tax regime as it is not only unprecedented, but also sets a dangerously bad precedent for constitutionalism in Zambia.
CCZ General Secretary Reverend Suzanne Matale in a statement says while all candidates hinted at taking such a move during campaigns for the January 20th presidential elections, and therefore such reversals seemed inevitable, the Zambians people have not been furnished with sufficient information about the details surrounding the about-turn.
Reverend Matale says the CCZ is doubtful whether this decision was independently arrived at by technocrats in the relevant government ministries and departments.
She says by government’s own admission, it is a pressurised political decision made after intense, usually private lobbying by mining companies who clearly have profit interests.
Reverend Matale notes that this decision has been influenced by foreign interests, as was the case with the revocation of SI 55.
She says the public is aware of similar reversals regarding SI 33, and more recently, the VAT Rule number 18.
She states that in view of this, a transparent resolve to the ongoing debacle will restore public confidence in the management of the country’s tax system, and the economy as a whole.
The CCZ General Secretary says ordinary citizens have a right to know on matters that affect them directly and the mining issue is one of such issues that they should be clearly informed about comprehensively.
Reverend Matale says it will not help Zambia for the President to be making semi-unilateral decisions.
Reverend Matale says CCZ is against reverting to the 2014 Mineral Royalty Tax because it inherently reduces or eliminates potential taxable profits.
She explains that this is because it allows for capital allowances and the carrying forward of losses.
She adds that for CCZ, the 2015 Mineral Royalty Tax was part of the answer to the cry of many Zambians to see increased beneficiation from the country’s natural resources.