Another peak at the global copper prices reveals a clear upward trend. We have now reached the copper price level at which President Mwanawasa introduced the windfall tax (in January 2008). Meanwhile, pressure continues to grow on the Banda government. The people want to see the Mwanawasa fiscal regime restored - the latest to join the rally call is Dr Mbita Chitala. Either we see change in this area or we all concede the mining companies have dribbled the people through state machinery.
“Government should reconsider the decision they made on windfall tax, the same way they changed their minds concerning the mineral royalty"Roman Kambone (Investment Analyst):
“The people of Zambia need to benefit from their resources, and the best way this can be done is to find a taxation system that is going to work....“Let’s assume that government collects about 15 per cent of all sales per metric tonne that mining companies are making through out the year, the mining companies would remain with 85 per cent of their cash to meet their daily expenses. And government would have more cash than they would have collected if they had implemented the corporate tax system. Moreover, it is difficult to say that government will tax profits from mining companies...profit is not always in cash....Profits are not real, even when a company has profits, they may not have cash....”