Stop bullying government on taxation, Mines told.

EAZ President Lubinda Habaazoka

Economist Lubinda Habaazoka has told off mining companies to stop bullying government on taxation.

Reacting to a statement by the Chamber of Mines in which they are seeking to increase loss carry over’s from 7 to 10 years and demanding the vat refund arrears to be repaid, Dr Habaazoka says mines should stop holding government at ransom.

He says mines want to extend the periods of declaring losses when they know that in a fiscal year they made profits but declare losses on technicality.

Dr Habaazoka points that individuals who have put their houses on rent are being taxed by government regardless of whether they built their houses using a loan or not, wondering why they mines should bully government on taxation.

He says the country is not interested in the mines projected increase in copper production to 1 million tones a year, because the more they produce, the more the country loses out because their contribution to government tax revenue is insignificant.

Dr Habaazoka wonders how the mines can pay mineral royalty of 3.5% and then fail to declare corporate income tax despite the fact that they receive $700 million in vat refunds,$240 million in electricity tariffs and $60 million in fuel subsidies.

He says it’s high time the mines came on board to help government raise resources.

He states that it‘s a pity that every time government moves in to correct the wrong, the mines start retrenching employees.

Dr Habaazoka has reminded the mines that here are other investors watching on the terraces, adding that this includes the option of nationalizing nonprofit posting mines.