14 September 2007
Lusaka — THE ministry of Finance and National Planning has rejected a request by the Solwezi Municipal Council for a tax rebate on Kansanshi mining activities for the company to develop the district.
Finance Minister, Ng'ande Magande said the proposition was contrary to current laws and Government's policy of not giving discretionary blanket tax exemptions to commercial entities.
Mr Magande, however, conceded in a letter of September 11, 2007 to Solwezi mayor, Emmanuel Chihili that issues on the need to have orderly infrastructure development in Solwezi were genuine and need immediate attention.
"My view is that these should be tackled within the confines of the Fifth National Development Plan (FNDP) and annual national budgets.
"By copy of this letter, I am reminding and drawing attention to my colleagues in the ministries of Local Government and Housing and Works and Supply over the same issues and see how we can move forward," he said.
The minister said if the proposed infrastructure were brought to the attention of the relevant authorities, ways could be found to reduce some Government imposition.
Mayor Chihili, who is also Kansanshi Foundation Trust coordinator, received Mr Magande's letter some 24 hours after handing over the Foundation's status report to North-Western Province Minister, Kenneth Chipungu.
The report, covering June 2006- June 2007 projects, include the multi-million Kwacha project proposals from the Solwezi Municipal Council for the construction of a modern civic centre.
The other proposals from the local authority included construction of a fire station, construction of centralised sewer treatment plant, procurement of three vans for service delivery and expansion of Solwezi main market.
The report says almost all the projects could be attainable if the Government consented to a joint appeal of Kansanshi and council management to have tax rebates on the mines.
The Kansanshi Foundation Trust, which has spent more than K3 billion since its inception in June 2006, is a non-profit making organisation funded by Kansanshi Mine board to upgrade physical and social infrastructure in Solwezi. "The foundation is the vehicle through which Kansanshi Mining is able to plough back some of its earnings into the community as part of its corporate social responsibility," the report says.
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