DPP to restore Zambian control of mining

DPP to restore Zambian control of mining

 By Mast Reporter

THE Democratic Progressive Party (DPP) says government has missed an opportunity to grow the country’s economy through increased tax revenue collection from the mines.

Speaking when he featured on Radio Phoenix’s ‘Let the People Talk’ programme yesterday, DPP president Antonio Mwanza called for the removal of tax holidays in the mining sector.

Mwanza said there was a need for reforms in the sector aimed at ensuring Zambians benefited more from the country’s natural resources.

He said his party would critically review all existing tax policies and laws in the industry once it formed government.

Mwanza said Zambia’s mineral wealth should directly benefit citizens and not foreign investors who were gaining more than the locals.

“We will cancel that arrangement. Going forward, there will be no mining firm that will be opened without Zambians as the majority shareholders. Every mining firm must have majority shareholding in the hands of Zambians,” he said.

Mwanza said Zambia as a country was not receiving a fair share of mining revenues from the mining sector because all large-scale mining companies were foreign-owned.

The current situation put the country on a weaker bargaining side.

In a win-win situation, no raw copper exports should be allowed.

“We will not allow mines to export raw copper in the form of blisters and concentrates. Mining companies must invest in smelters, processing and manufacturing plants, which will in turn create jobs for our people and generate more foreign exchange in the export of finished products. That’s the only way we can create jobs for our young people,” he said.

He expressed concern over the significant revenue losses from Value Added Tax (VAT) refunds.

Mwanza said the Zambia Revenue Authority (ZRA) pays about K9 billion annually, with more than 70 per cent going to fewer than six foreign-owned mining firms.

“We will cancel tax breaks and tax holidays that have been given to mining firms. When you look at the VAT refunds ZRA pays about K9 billion per year, about 81 percent of that goes to less than six mining firms. Who owns these mines? Foreigners and who benefits? Foreigners, whose economy grows? Foreigners. So we are right to say we need to change the way we do things if we are to fight poverty, create jobs and a robust economy,” he said.

And Mwanza has wondered how Zambians were benefiting from the economic growth President Hakainde Hichilema had talked about during the recent mining insaka in Lusaka.