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Friday, 25 June 2010

Are mines in Luapula evading taxes?

Yes. According to Civil Society for Poverty Reduction Yvonne Besa, especially those in a "small scale category" :

How can the poverty levels of the people be alleviated if the people extracting the country’s resources cannot comply and pay the tax that is supposed to be used to better the lives of the people? We want these especially small-scale miners to pay these taxes and urge government to channel the resources to uplift the lives of the poor people in society through provision of health, educational facilities and improved infra-structure...As a network that advocates for the marginalized in society, we are saddened by government’s failure to curb this evading of tax by these mining companies...

Although it is said Zambia’s economy was diversifying, mining is still a major tax contributor in the country. Therefore, it needs to be harnessed in order for government to obtain the much needed revenue for national development. CSPR in Luapula Province is appealing to government through the Ministry of Mines and Minerals Development to decentralise its operations in the province so that it can restrain the illegal mining which is said to be on the increase in the province because government would continue to lose income in form of taxes and royalty payments because of non-compliance of the legal and illegal miners operating in the province..

We urge government to coordinate the process by first ensuring that the fragmented small scale firms are captured through normal registration. We further challenge the Ministry of Mines and Minerals Development to smoothen and re-organise the mines licence issuance process to curb illegal mining in the province.
This is not special of course - we have talked about similar challenges with the precious stones industry - see A lost precious stones industry.

1 comment:

  1. Did you see the discussion how poverty can be alleviated through technology at the UNECA conference in Addis this week? http://www.essentialafrica.com/updates/1095/eradicating-poverty-takes-technology-experts-say
    I'd like to see more of those discussions.

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