By Thomas Ngala
NKANA member of parliament Binwell Mpundu has joined a list of people arguing that the removal of export tax on precious stones does not benefit Zambians
Featuring on Prime TV’s “Matters Arising” on Saturday, Mpundu said the removal of the tax in question on precious stones will only benefit the foreign companies who he said dominate the sector.
This is contrary to the government’s position, as Minister of Finance and National Planning Situmbeko Musokotwane says the move will help the industry grow and bring more revenue to the treasury.
But Mpunda said: “When you look at the gemstone industry, I come from the Copperbelt, I was part of the committee on national economy that did a tour of the gemstone mine. When you look at Victor Kalesha, he is my big brother…and the entire association of gemstone miners, and you take stock of what they produce and what their produce accounts for, it is nothing, it’s insignificant.”
Mpundu said the outcry to have the tax removed was misplaced.
Mpundu accused the government of doing whatever the investors ask them to do at the expense of Zambians.
He also accused the government of giving a deaf ear amidst their outcry about unfavourable taxes.
“The bigger players are foreign entities. So, that outcry is misplaced. Well, for him, he can, but when you understand what our locals are producing or what they represent in that sector, it is minimal, it is nothing. And I say this with all my heart, Victor needs to be supported and his team, what they represent is a small chunk, an inconsiderable small chunk. So, this reversal does not benefit Victor and the team. It benefits the big boys,” he said. “Now, we cannot be playing to the gallery or at the hands of the investor. They cry; ah let’s give them. Meanwhile, how much have the locals complained about the unfavourable tax system? The worker has been crying for many years over the Pay As You Earn (PAYE), have we heard them?”
The lawmaker said the local businesses have been crying over Zambia Revenue Authority (ZRA).
“It is garnishing… have we ever listened to them? The businessmen in Zambia, small and medium, have endured COVID, they have endured load shedding, the barbershops have closed down, the butcheries have closed down, the restaurants, they have all closed down,” he said. “And they have cried to the government, has this government ever paid attention to them? Why is it that when the big boys cough, you are jumping and then you front our people to say we want this because it affects us? Why is it that when the boys cough, you have to reverse the mineral royalty?”
He said he was not making his remarks out of malice.
The parliamentarian said even if a study were to be conducted, results would indicate that the ones dominating the sector were foreign -based and the locals accounted for a fraction.
“I am not talking from malice. Let us go and do study about how much the local Zambians who are in the gemstone business account for. It is nothing. So, it is the big boys who are coughing and you jumping,” he said.
Meanwhile, Mpundu said the country cannot progress if the only way to curb inflation is to increase the monetary policy rate.
He also accused the government of giving false figures regarding the country’s inflation.
“You cannot go anywhere if the only decision you know to curb inflation is to increase the monetary policy rate. The monetary policy rate simply means let us draw money away from circulation. The little that we have becomes extremely experienced for the businesses to access. The Zambians are struggling to access that resource because it is not available and it is at extremely high interest rates,” he said. “You cannot be curbing inflation, meanwhile, you are suffocating the private sector. That is why ba Musokotwane must begin to adopt new means of handling the inflation. By the way, that 16 per cent you have mentioned is a false figure. Inflation should be over 30 [per cent] by now. The consumer price index, you should ask the minister of finance, when was it ever revisited?”
And Mpundu said there is no hope for the Zambians as the country heads to the polls next year.
“There is no hope [for the Zambians]. As long as we keep going in this direction where people are not ready to listen, where people pretend they know when they don’t even know, where people put bubble gum in their ears, we are headed in the wrong direction,” he said.
