Govt raked in US$87 million in windfall taxes in 2011


Mining Companies paid windfall tax amounting to US$87 million to the Zambian government in 2011 according to the latest 2011 Extractive Industry Transparency Initiative EITI report.
The mining companies that paid the windfall tax are NFC Africa mining, Chibuluma mines, Chambeshi metals, Kansanshi mine, Mopani mine and Konkola Copper Mines.
Windfall tax was abolished by the Rupiah Banda led MMD government.

And Caritas Zambia has implored the government to have a listening ear and consider reintroducing windfall tax.

Caritas Zambia Executive Director Samuel Mulafulafu in a statement issued to QFM News today says the $87 million paid as windfall tax is what Government could have been receiving every year from the mining companies which would have made a huge difference to infrastructure development and employment of more civil servants like nurses and doctors.

Mr. Mulafulafu says government’s position on windfall tax has continued to disadvantage many poor Zambians who require quality social service delivery.

He has also implored government to seriously ensure that all mining companies pay their dividends so that the nation can benefit from the inordinate profits generated, considering that only two mining companies Chibuluma and Kasanshi mines paid dividends of the mining companies that were reconciled.

He further wonders how the government reported to have received K7.72 billion from mining companies, more than what the mining companies paid which is K7.67 billion.

Mr. Mulafulafu however says Caritas Zambia is encouraged to note the 100 percent revenues increase from K3.02 billion in the 2010 EITI reported figures to now K7.5 billion according to the latest 2011 EITI report.

Mr. Mulafulafu has since implore the government through the Auditor General’s office to play an active role in enhancing transparency on tax revenue recordings and tax expenditures as well as monitoring and applying pressure for the implementation of audit and EITI recommendations.