By NATION REPORTER
CHRISTIAN Democratic Party (CDP) president Dan Pule has urged Government to do away with tax holidays being given to foreign mining investors for the country to generate the needed revenue for the already seriously stressed treasury.
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Speaking at a press briefing, Dr. Pule said tax holidays in the mining sector have had a negative impact on the country’s economy because they only favour multi-national companies while the local businesses were sidelined.
He said the CDP believes that the over USD $600 million lost in tax holidays could have helped reduce the government debt service burden as well as providing the necessary revenue for investment in social sectors such as education and health.
“Our country is endowed with rich mineral wealth and Government cannot afford to continue giving tax holidays as the country is losing the desired revenue which should contribute to the development of social sectors of the economy,” he said. Dr. Pule said the other concern they have as a party was the country does not have a clear mining policy, as a country we keep going forth and back.
He said Government needed to tell the nation what was happening with the gold in Kasenseli, Mumbwa, Chisamba, Rufunsa and other parts of the country including in Eastern province and Muchinga provinces Mpika in particular.
Dr. Pule said new minerals such as Sugilite in Luapula province; and lithium in Kalomo and other parts of the country have just gone quiet on them and the foreigners were mining illegally.
He said Zambia’s mineral wealth has continued to be mined without any benefit to the nation except those with connection with the government as was seen in the case of sugilite in recent months and as evidenced by those senior government officials in Luapula province who were reluctantly fired.
Dr. Pule said the lack of a clear mining policy has encouraged a lot of illegal mining activities in the country, which in most cases has favoured foreigners.
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