GAWUZ wants govt to reintroduce windfall tax

Gemstones and Allied Workers Union of Zambia President Sifuniso Nyumbu has noted the need for te government to reintroduce windfall tax as a way of ensuring the money investors make especially in the mining sector stays in the country.

Windfall taxes are primarily levied on the companies in the targeted industry that have benefited the most from the economic windfall, most often commodity-based businesses, and in Zambia the windfall tax was scrapped off in 2009.

Mr. Nyumbu is of the view that investors in the mining sector are making a lot of profit which is being taken out of the country freely without any penalties as there is no tax to compel them to keep much of it in the country.

He says with the reintroduction of the windfall tax, 30 percent of the profit made in the mining sector by investors can remain in the country and be used for various projects which include the building and maintenance of roads, schools, hospitals as well as the improvement of water and sanitation facilities.