ZRA MUST PAY MOPANI THE $110 MILLION OWED IN VAT REFUNDS

By Michael Kaluba

Social Anthropologist James Musonda has suggested that government instructs the Zambia Revenue Authority-ZRA- to pay Mopani Copper Mines the $110 million owed in value added tax-vat- refunds to reduce the deficit from the $300 million needed to make the mine profitable again.

Dr. Musonda says with ZRA raising more money than expected, it must pay Mopani these tax refunds and further, that government gets the $190 million from its reserves to correct the situation at the mine.

He laments that it is detrimental for Mopani to be producing just over 81,000 tons of copper annually, from 185,000 tons previously, while importing over 160,000 tons of copper concentrates from outside Zambia.

Dr. Musonda tells Phoenix News that while the Minister of Mines, Paul Kabuswe’s indication that the recapitalization of Mopani is underway, the salary delays have complicated the economic situation of the workers who operate under harsh conditions underground, with low salaries and with no insurance.

He warns that any attempt to sale Mopani in its current state will be a huge loss to the country unless the mine is turned into a profit making venture and 50 percent of the asset remains under government control.
PHOENIX NEWS