By Isaac Zulu
Former Muchinga member of parliament Howard Kunda has said that he is against the proposal in the 2023 national budget to sustain tax incentives for multinational mining companies.
Speaking with Daily Revelation, Kunda explained that it will be difficult for the UPND government to grow the economy if it continues to give tax incentives to multinational mining companies.
He said currently there is no liquidity in the economy because government is not maximising on revenue collection.
“My position is that you cannot say that you want to grow the economy when you are giving out money to multinational companies in form of tax holidays or tax incentives. I am personally against that proposal in the 2023 national budget,” Kunda explained. “We have continued seeing mining companies taking copper, gold, silver, manganese and all these other minerals in large quantities. But we are not investing those monies back in our country’s economy. We currently have a situation where there is no liquidity in the economy because government has failed to maximise on revenue collection. And I think the current government should do think differently.”
Kunda argued that if multinational mining companies have been making losses, as they claim, they would have pulled out of Zambia.
“They have been complaining that they are making a loss and asking for tax holidays, but they have always been coming to invest in the Zambian mining sector. And Zambians have not been benefiting from this waste asset. I think it is high time government realised that,” Kunda said. “They get the minerals and leave holes all over the mining areas in the country. I will give you an example of Nchanga Open Pit Mine. That pit is big! But if you ask me what we have realised from that mine, I don’t think it is worth the damage that has been left in at Nchanga Open Pit Mine.”
Kunda, who is former chairperson for the Parliamentary Public Accounts Committee, implored the current parliamentarians to reject the budget proposal aimed at sustaining tax incentives for multinational mining companies.
“I know that the budget has not yet been approved. And I would implore the members of parliament, who have been elected to elect to represent the people in Parliament to do the right thing. They should reverse some of these proposals that are not beneficial to the general populace,” said Kunda.
