22 May 2008
editorial
Ndola — Contrary to the sentiments of some sceptics in some circles both within and out side Zambia, mining houses operating in the country are showing themselves to be true partners with the people of Zambia.
The compliance in paying the various revised tax obligations to the Government, as disclosed by Zambia Revenue Authority (ZRA) is a manifestation of this partnership.
This is a partnership which the Government itself has diligently honoured and supported in the entire history of mining in Zambia. The advent of the new tax regime for the mining sector as announced by the finance minister during presentation of this year's Budget brought about all manner of theories, positions and speculations. There were scenarios of trouble ahead in the mining sector because it was believed that the mining companies would not be able to manage to meet the new tax charges as well as fears of dwindling reinvestment in the mining industry.
However, it is good that mining houses in Zambia have proved the sceptics wrong by complying with the tax obligations. This shows that they too as partners in the economy have the interests of the country at heart. Going by the amount that would now be due to the Government, compared to the previous monies payable to the treasury in taxes, the country would truly benefit from its mineral resources through Government's programmes aimed at benefiting the majority of Zambians. It does not need complicated reckoning to realise that hitherto, the amount of benefits coming into State coffers from the exploitation of the country's mineral resources were negligible.
As Zambia Revenue Authority Commissioner General, Chriticles Mwansa has projected, the bulk of the revenues from the mining sector are expected to be paid in June. This means overall, there is still some more money. The Government is now on target to attain the US$415 million revenue projected under the new mining tax arrangement. The mining sector has been the mainstay of Zambia's economy ever since mining started in this territory in the last millennium. The sector will play this central role in the considerable future as long as the country remains endowed with mineral resources.
It is only prudent therefore that the country gets as much benefit as possible from these resources. The Government on its part needs to be commended for working out an equitable agreement with the mining houses and championing the interests of Zambia.
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