Zambia: The Centre for Trade Policy and Development (CTPD), Zambia, called for full mapping and regulation of the gemstone and small-scale mining in the country to curb tax evasion in the sector. In an interview with Times of Zambia, Saviour Mwambwa, Executive Director, CTPD, said the only way tax evasion could be lessened would be by carrying out full mapping of minerals in the country. He stressed that this would help the Government to have full information on where specific minerals are located.
Mwambwa observed that currently, Zambia was getting 70 percent revenue from within the country while 30 per cent was coming from co-operating partners and loans from other countries. “If the Government sealed off all the loopholes, the budget could be financed 100 percent locally.”
Mwambwa urged to the Government to encourage partnerships between local and foreign investors in the gemstone industry as a way of empowering the local people. “The other way to reduce profit extenalisation and tax evasion in the mining sector is through partnerships between the local and the foreign investors,” he said.
Recently Washington-based group Global Financial Integrity (GFI) reported that more than GBP 5 billion (K40 trillion) has been illegally siphoned out of Zambia over 10 years, with most of it ending up in offshore banks and tax havens. A report by financial transparency campaigners blamed crime, corruption and tax evasion for the loss of USD 8.8 billion (GBP 5.4 billion) from the resource-rich country.
Source: Times of Zambia