ZAMBIA COULD LOSE OUT ON TAXES IF MOPANI RELOCATES TO SA
The Zambia Institute of Purchasing and Supply (ZIPS) has charged that Zambia risks losing out on taxes if Mopani Copper Mines goes ahead with the proposed relocation of its procurement office to South Africa.
This follows reports that the company has moved forward its purchase agreement contract buying office from Kitwe in Zambia to Johannesburg, South Africa despite protests by Zambian suppliers.
this was after it was reported that mines minister Richard Musukwa had given a go ahead to the mining firm saying procurement of contracts and supply remain in Kitwe and Mufulira where Mopani operates.
In an interview with Phoenix News, ZIPS President Chibwe Mwelwa says 70 percent of the cost of production is procurement which can be used to avoid paying taxes.
Mwelwa adds that the mining company can deliberately inflate the cost of procurement to be seen to be making losses and in the end avoid paying taxes.