The Post reports Deputy Finance minister Jonas Shakafuswa has announced that new windfall taxes on the copper mines will be imposed through an ‘executive decision’ and will come into effect immediately following this year's budget.
The Deputy Minister also said that the decision was a direct result of public pressure and, in a massive change of tone for the MMD Government, threatened the companies with the 'wrath of the Zambian people' if they tried to challenge the decision. “Being a listening President, President Mwanawasa listened to the calls of Zambian people who were calling for increasing mineral taxes in mining sector and that is why we started renegotiating the development agreements,” Shakafuswa said. “But when we realised the renegotiation process was taking long, the President made an executive decision of imposing a windfall tax which is going to come into effect immediately after the presentation of this year’s national budget.”
Shakafuswa urged mining companies in the country not to resist the new tax regime in the mining sector as doing so would ‘tarnish the image of multinational companies’. “Our colleagues should understand that the Zambian people are in a hurry to develop and they should not frustrate this because this decision was made by the government based on the wishes of the Zambian people,” said Shakafuswa. “So if they decide to resist these changes, they will be leaving a bad legacy not only for themselves but for all international companies. And remember, these changes are a call of the people, so if they want to frustrate this decision, then they will face the wrath of Zambian people.”
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