The Post (http://www.postzambia.com/post-read_article.php?articleId=38428) today reports on Friday and Saturday's Parliamentary committee hearings, discussed in yesterday's blog - they add some useful detail to what we already had.
The Post note that Mumba Mulila the Attorney General announced that he is ready to defend Zambia in the courts if mining companies take legal action over the new taxes for the mines. Secretary to the treasury Evans Chibiliti also said his office and finance minister Ng’andu Magande had received strict directives that no negotiations should be held with mining companies. Rather, any meetings with the companies will simply explain how they should calculate their taxes due under the new system.
Chibiliti said. “Government has already considered the fact that mining companies might take legal action. We have thought about this and have evaluated government’s legal position and that of the mining companies. It is very possible for the mining companies to take government to court on the basis of the DAs... We are scheduled to begin meeting mining companies this week on how they can compute the taxes unlike having them to rely on people that do not understand how the mining industry operates. ”
Chibiliti said there would be no negotiations with the mining companies over the new tax regime.“The Secretary to the Cabinet and the Minister of Finance do not have the mandate to negotiate the new tax regime. President Mwanawasa said if there is need for clarity, we can only explain to the mines how the new tax regime works,” Chibiliti said. “We are confident that once provided with an explanation on how to compute tax obligations, the mines will no longer be alarmed.”
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