James Muyanwa
1 February 2008
Addis Ababa — PRESIDENT Mwanawasa has said a mining investor has complained against the proposed mine tax regime but the Government will not back-pedal and will next week introduce a Bill in Parliament to legislate the changes.
And President Mwanawasa has called on Zambians resident abroad to invest into the Zambian economy and help their relatives back home.
Dr Mwanawasa said here that the Government was determined to get its fair share from the mining sector, hence its move to increase the tax from 31 per cent, which was the lowest in the world, to 47 per cent.
Dr Mwanawasa said yesterday when he addressed the Zambian community in Ethiopia that following the Government's announcement of the proposed changes, a mining investor, whose name he did not disclose, wrote to him and complained against the new tax system.
President Mwanawasa said that the Government was merely ensuring that it obtained a fair share from the mineral resources the country was endowed with and would go ahead and implement the proposed taxes.
He said the Government was getting a raw deal from the mining sector while the investors were getting the lion's share through increased profits brought about by increased metal prices.
Dr Mwanawasa, who is attending the 10th Session of the African Union (AU) Heads of State and Government Assembly, said in the last two years, the Government only got about US$141 million from the mines but the investors got away with huge sums of money.
"There has only been one mining company which has written to me complaining about the new tax regime," he said.
He said that next week the relevant Bill would be introduced in Parliament for the House to deliberate on to ensure the proposed mining tax regime became Law.
Dr Mwanawasa told the gathering at Zambian Ambassador to Ethiopia, Patrick Sinyinza's residence, that the Zambian economy had been transformed, and called for investment from Zambians resident abroad.
On the political front, he said he was happy that the tension which had bedevilled the country over the Constitution review process was now over.
Dr Mwanawasa was hopeful that the resultant Constitution would be ready before 2011 to ensure that the general elections were held under it.
On the floods, he said there were enough food stocks for all the people affected by floods this season but the Government would not dish it out to able-bodied people and those who could afford to buy.
Dr Mwanawasa said only underprivileged people would receive free relief food because continuing to give handouts in form of food would encourage laziness among the people.
He said although the floods were a setback, the nation had not collapsed, while starvation would be abated because the country had recorded a bumper harvest in the last couple of years.
He said that did not, however, mean the Government did not need help from outside. The external aid was welcome to meet other humanitarian needs caused by the disasters.
Mr Sinyinza and chairman for Zambian community in Ethiopia, Washington Kalunga Mukungila, hailed the Government for transforming the economy.
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