MUTELO URGES GOVT NOT TO COMPROMISE ON VAT REFUNDS DEMOCRATIC Governance and Human Rights Advocates national coordinator Gerald Mutelo says there is no transparency in the management of Zambia’s mineral resources because of clear attempts by investors and interested individuals to manipulate the government on VAT refunds to the mines. Mutelo said in an interview that the Zambian people have always been manipulated on VAT refunds by some technocrats within the system of governance that were apparently conniving with investors on issues of tax. Last Thursday, the Zambia Revenue Authority said it would not allow payment of US$600 million in VAT refunds to the mines and other exporters without necessary documentation to back up their claims after reversing its decision not to amend VAT rule 18, effective September 8. ZRA commissioner general Berlin Msiska told journalists in Lusaka that the U-turn on the amended VAT Rule 18 was necessitated by widespread concern on the matter, and confirmed that the rule would apply as before. But Mutelo said while the U-turn was the best thing ZRA had done to protect the interests of Zambians, there was need for President Michael Sata’s administration to completely remove the provision of VAT refunds to the mines because it was detrimental to the country’s economy. He said it would not have made sense for the government to release US$600 million to pay the mines as tax refunds when the country was still grappling with high poverty levels. “We should not compromise as a nation and bend to the demands of foreign investors on issues of VAT refunds. Our government must not be arm-twisted by investors because from the word go, they have not been sincere to Zambians in the manner they conduct business. For us to see the benefits of these mines, we need to be strong and ensure that there is transparency in this sector. We have investors that have exhibited insincerity before looking at the issues of illicit financial flows and many other vices,” Mutelo said. He said the government was expected to consider calls by majority Zambians who have been advocating the reintroduction of windfall tax. Mutelo said windfall tax was critical to the development of Zambia because the country was wallowing in poverty despite being endowed with rich mineral wealth. postzambia/news.php?id=2019
Posted on: Wed, 24 Sep 2014 07:08:43 +0000
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