The Patriotic Front government says it has no intention of introducing the windfall tax that compels mining firms to up their tax remittance during boom periods.
Chief government spokesperson Kennedy Sakeni said that government would not effect the windfall tax on investments.
Sakeni said introducing the windfall tax would abrogate the contracts government has with the mining firms.
“Yes that matter has been coming up but there is no way we can introduce those taxes because those firms have contracts that are binding and we cannot abrogate that,” Sakeni said.
The PF government had been vocal on the issue of windfall taxes on mining firms once in opposition but have gone cold on the matter since ascending to power.
After Copper prices bounced off from the desperately low prices of the 2001-02 period there was an outcry that government should renegotiate the taxes that had seen the investors rake huge profits as they bought the mines at the time Zambia was in a desperate situation.
The mining industry is going through turbulent times with the spectre of 2000 imminent job losses hovering over Konkola Copper Mines.
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