By Michael Kaluba in Kitwe
The Association of Mine Suppliers and Contractors has told government that it is being duped into financing operations of mining companies through fake claims of Value Added Tax –VAT- refunds from the Zambia Revenue Authority –ZRA-.
Association President Augustine Mubanga, in his submission to Finance Minister Bwalya Ng’andu, who is leading a delegation of government officials on the Copperbelt to deal with challenges in the industry, said some of the vat claims by mining firms are not satisfactory.
Mr. Mubanga said the Zambian government is indirectly financing the mines.
According to Reuters News Agency, Zambia owed major mining companies over K2.8 billion in vat refunds as at June 30, 2019 although Finance Minister Dr. Bwalya Ng’andu at the time also revealed that the mining companies were claiming an additional over K4.9 billion without providing documentation to this effect.
Mr. Mubanga has further accused mine investors of exaggerating the amounts they proclaim to invest as foreign direct investments especially that they are not held accountable on how these billions of dollars are supposedly spent in Zambia.
He has since asked government to ensure investors state amounts of money that end up as investment in the country and not only to prop up their profiles.
Meanwhile, Kitwe Chamber of Commerce, Trade and Industry President, Anthony Kabaghe says there is need for legislation to compel investors to give Zambians business especially that the country has continued to lose money to foreign owned companies whose decision makers have no interest for Zambia.
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