"The removal of windfall tax will not lead to loss of government revenue as the variable tax still captures any windfall gain that may arise in the mining sector"President Rupiah Banda ignoring common wisdom of tax collection. Although many agree that theoretically the profit variable tax can go some way in capturing the necessary revenue from higher copper prices, a windfall tax is easier to implement. It is also easier for the public to check how much revenue government is getting in its coffers. With a profit variable tax it is an accountant's job! Multi nation companies love profit variable taxes because it is easy for them to hide their profits through inflated costs and so forth. Simply put, the mining companies have smarter accountants than the Government. This is why the mining companies have been pushing for removal of the windfall tax. They know they'll pay very little.
More importantly, the President is alone in thinking the current situation is ideal. Only yesterday, the European Union called the current situation "depressing" and asked the Government to review its position by increasing the level of tax and improving collection. Simpler taxation mechanism are key to improving collection.