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Friday, 8 July 2011

Zambia Mining Tax Revenues

I was prompted to construct the tables below from the profoundly useful ZRA sources in light of the on-going discussion around the Alaskan model – and the upcoming monthly essay (for August) on “mining taxation”. It also gives a good excuse to play with table formats!

Zambia Mining Sector Tax Revenues (Billion Kwacha)

2006
2007
2008
2009
Company Tax
           160
           603
           464
             401
Withholding Tax
                 -  
                 -  
                 -  
                 -  
Mineral Royalty
              59
              68
           238
             235
Export Duty
              -  
                 -  
           178
              15
Windfall Tax
                 -  
                 -  
           126
                 -  
PAYE
           290
           436
           596
             582
Total Contribution
           509
        1,107
        1,602
          1,232


Zambia Mining Sector Tax Revenues (US$M)

2006
2007
2008
2009
Company Tax
36
134
103
89
Withholding Tax
-
-
-
-
Mineral Royalty
13
15
53
52
Export Duty
-
-
40
3
Windfall Tax
-
-
28
-
PAYE
64
97
132
129
Total Contribution
113
246
356
274
Zambian Economist calculations assuming a $1= K4500 rate
It should be noted that in terms of mining contributions the appropriate figures to use are  “mineral royalty” and “windfall tax”. The other taxes are generic taxes paid by companies and therefore do not constitute “mining revenue” in  any credible sense of the word

7 comments:

  1. compare to tax evasion !!

    only Mopani ...


    "Zambia,Africa’s largest copper producer lost an estimated income of USD 175million in tax revenue between 2003 and 2008 from tax avoidancepractices’ by Glencore AG International owned Mopani Copper Mines.

    UnitedKingdom based Non Governmental Organisation, Action Aid said in itspilot audit by Grant Thornton, Zambia and Econ Poyry, a Nordic basedglobal consulting and engineering company which revealed glaringirregularities in production and revenue figures that Mopani CopperMines submit to Zambia Revenue Authority for tax administration, mostwhich hinge on its links to Glencore AG international."

    "Zambia continues to lose ondividends from Mopani Copper Mines as the Glencore owned mine neverdeclare any dividends to Zambia Consolidated Copper Mines InvestmentHoldings. During the period under review, Action Aid estimates that the Zambians government lost an estimated USD 50 million per year in undeclared dividends to ZCCM IH by Mopani.Mopani Copper Mines, according to Action Aid was avoiding declaring anydividends by ZCCM IH through transfer pricing and over statement of thecosts."

    ------------------

    2003 -> 2008

    $175 m + (6X $50 m)= $475 m

    $450 m = K2,025,000,000,000

    only for Mopani !!!!

    ReplyDelete
  2. Excellent point.

    The truth is that in this 'globalized economy', national level politicians merely act as bagmen for the IMF/World Bank/mining companies and the banksters who own their shares.

    This is not democracy. The people's will is not being reflected in government policy.

    In fact, this dictation of policy by the IMF/World Bank, by international trade agreements, is ANTI-DEMOCRATIC in the extreme. And the opposite of democracy is totalitarianism.

    ReplyDelete
  3. David from ZRA12 July 2011 at 11:22

    I am glad you have found our statistics page useful.
    Please note that an update on these statistics (as well as the GDP and other data) will appear as soon as the ZRA Annual Report has been published.
    Regarding formatting, this is an issue we will try to improve, but for now I recommend that you paste as text when transferring to Excel.

    ReplyDelete
  4. David,

    When is that publication coming out?

    ReplyDelete
  5. Mukubesa Inambao21 July 2011 at 13:35

    why is it that the revenue from mining companies is not banked in zambian banks.becouse that is going 2 benefit zambia.if only that money can pass through zambian banks and there after they can withdraw it and bank it where they want to bank it.

    ReplyDelete
  6. Mukubesa,

    Can you explain how it benefits Zambia for the money to be banked there?

    Your comment may have some merit but it is unclear!

    ReplyDelete
  7. it will benefit zambians, look these ar large sums of money we ar talking about here not some chiken change if this money can be kept in zambians banks it will be circulated among zambians for the period it will be there in forms of loans and other ways. the banks also will gain.it can be loaned to zambians for businesses atlist b4 it goes

    ReplyDelete

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