By Esther Chisola
Secretary to Treasury Felix Nkulukusa says the K314 IRH paid in taxes was from the money the company promised to invest in Mopani Copper Mines.
And Nkulukusa said the government announced the K314 million tax payment by Mopani Copper Mine (MCM) “to name and shame” other mining companies to start paying.
Last Tuesday, Ministry of Finance and National Planning minister Dr Situmbeko Musokotwane disclosed that since MCM was acquired by International Resources Holdings (IRH) in March 2024, the mining company had paid US$13 million or K341 million in taxes.
But former Commerce, Trade and Industry minister Bob Sichinga questioned the payment, wondering why the ministry was making such a revelation instead of the mining company itself.
Responding to Sichinga’s concerns, Secretary to Treasury Nkulukusa said IRH used the money they promised to invest to pay for the taxes before they start making their own money.
“IRH came with their money, they are coming with their investments and they were saying that instead of waiting until they make the money, they say as a good corporate citizenry, the money they promised to invest some of it, they immediately said that they paid the creditors because if they don’t pay the creditors who is going to supply them?” Nkulukusa asked. “So, it’s out of the money they committed to invest that part of it they are paying the taxes even before they start making their own money. Right now, they are still investing and will probably start making money in 2-3 years.”
Nkulukusa said the announcement was aimed at compelling other mining companies to pay their creditors and taxes.
He said Mopani had been given to IRH in Abu Dhabi and was doing everything to pay all their creditors including Zambia Revenue Authority (ZRA).
“Government made that announcement on behalf of Mopani because we are trying to show good cooperate so that others can follow. When others hear that Mopani has paid, they will know that the government will now make an announcement so that they also start paying,” Nkulukusa said. “If you want, it is what in America they call it name and shame. The only thing we have done is that we have named, so that the others will be saying, ‘can we do good so that the government can recognise us and announce.”
Nkulukusa said the taxes which Mopani paid for were for were VAT and income Taxes mainly.
He said there had been some outstanding arrears and as such when the payment was done, they were reducing on the burden.
“Normally … we don’t say for the period because the stock accumulates. And if you want to know the specific period, the Zambia Revenue Authority would be able to tell you,” said Nkulukusa.
