Dr Mathias Mphande (UNZA) :
“Other than incompetence they just (government) don’t know the importance of taxation to development and in relation to poverty reduction-that’s all. They really don’t care for Zambia, they care for their Chinese, Indians and foreign investors-they don’t like Zambians. They are not working in the interest of the country for sure.....But you put it on record, that is why our country is not going to develop, it cannot develop on internal resources, our only internal resource is valuable and proper taxation of the mining industry, without proper taxation of mining companies, this country cannot develop and that is why it is not developing....So it is just foolish for this government to postpone development to our country by the unjust taxation system, whether its windfall tax or royalties what is important is that what we are collecting from the mining industry is not fair for the country..."
Dr Situmbeko Musokotwane (Finance Minister) :
Dr Musokotwane explained that it is not possible to re-introduce the windfall tax on the mines as it is unreasonable....the finance Minister said that Zambians should not mislead themselves that there is no any other tax from the mines. He observed that most people think that without the windfall tax, Zambia is not receiving any other tax from the mines.....Dr Musokotwane stated that Zambia’s windfall tax was too high and unreasonable. He said that if Zambia introduces the windfall tax, it is likely to discourage investments in the mining sector in the end collapse it.
I score this 1-0 to Mphande because the Minister's argument is hollow and I thoroughly debunk it on Eight reasons for rejecting higher mining taxes... The government needs fresh arguments. All the reasons they have put forward don't hold water. Since I wrote that piece I have yet to hear a single new argument by government and their pro-mining companies allies worth wasting additional intellectual capital on. As such the debunked reasons remains at eight.