What did Guy Scott mean when he said draft tax laws with cause panic?

By David Ryder 

What do you make of Zambia’s Vice President Dr Guy Scott’s comments on proposed tax changes for companies?

In an interview given in Johannesburg on 27th April he said that proposed tax laws in the pipeline were meant to ensure transparency of private business. However, he did not believe draft documents of the laws should be published as they could “cause public panic” before being approved by Government.

Scott rejected claims that the government of Zambia is “anti-business”, saying it wants to clean up business practices and collect its fair share of tax from companies operating in the country. The government is instead “pro consumer” and “pro competition”.

Curiouser and curiouser

This is a very curious use of language in my view.

“Panic” is usually associated with a crisis or transformative change. It does not usually accompany continuous change. So one has to assume that we are in for a major overhaul of the tax laws governing Zambia, perhaps but not only, focused on the extractive industry but on all foreign owners of enterprises, a favourite target of this government especially after the Zambia Sugar revelations by ActionAid earlier this year.

The new budget is due in September-October so one can assume changes will be effected this year.

Investor Friendly?

Foreign investors take fright at sudden changes as they are seen to increase political risk and projected returns. In a climate of cooling commodity supercycle this could be disastrous for future investment.

Scott’s language will not be re-assuring. Restrictions and controls on repatriation of earnings will be unwelcome coming as they do on top of foreign exchange and interest controls.

The government and the country deserve transparency and compliance to collect what is fair. All companies – Zambian private or parastatal and foreign owned – must expect to pay more.

The likely outcome of Scott’s remarks far from re-assuring investors will be to halt investment plans until the tax regime is clarified. ZDA’s trumpeted $2b in investment pledges will not materialise. This was poor politics.

 

COMMENTS

WORDPRESS: 35
  • comment-avatar
    Cult hero 4 years

    I remember how late FTJ fired him in 1992 after he falsely declared swine flu, slaughtered his pigs and compensated himself!

  • comment-avatar
    van dyk 4 years

    wow! he is really white!

  • comment-avatar

    I will not talk about your competence, the post merely disgusting

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    To the contrary, I find Guy Scott as one of the few brains inside at the moment.
    I liked his admission recently that there’s been rampant corruption in the manner the Fertiliser Input Support Programme was handled by this Government.
    He is the lone voice in Parley too, if we all care to listen.
    I am not sure if these racist rants have room in the minds of our today’s Zambia as carelessly splashed by some bloggers here, but I mean the man could have weaknesses as any other man not quite because he is a whitey!
    On the low side, he is in the minority remember so it makes any rationale really fragile for those that are seriously putting across their views.
    You be the judge!

    • comment-avatar
      Kay 4 years

      You choose to pretend he did not break the law and carried on campaigning beyond the allowed time, you are a letdown with your silly muzungu anikonde mentality.

  • comment-avatar
    Sam Chungu 4 years

    Such racist comments here, so sad for Zambia.

    • comment-avatar
      Chungu Sam 4 years

      I have borrowed your blog name. It is not about racism. It is anger of the masses that is coming out. People had great expectations and they have been let down by PF. Sata has been the biggest let down Zambia will ever have. Dr. Guy Scott is also a let down as he is out there to enjoy and amass wealth while the sun shines.

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      Chungu Sam 4 years

      Zambians are not racist.

      • comment-avatar
        Woman of Substance 4 years

        You can’t say that about all Zambians can You? The white Zambian Sata VP who cannot act, shame!

  • comment-avatar
    TheEngineer (Australia) 4 years

    a white chibwi with no plan

  • comment-avatar
    TheEngineer (Australia) 4 years

    David Ryder

    You fail to understand that the more dull you are the more you appeal in PF. Where ever Scott has worked he has been fired… KK and Chiluba fired him. Mwanawasa thought he was a F.O.O.L

    So he decided that if his PhD could not work for him he would rather be a grade 7’s chola BOY.

    You were expecting too much from a white “Useful F.O.O.L”

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    webman 4 years

    never , never ever trust a white man. since when has a white person been out there looking out for our interests without any there being any benefit or advantage for him. mark my words, this man is upto no good for our country. what do you think comes out of his mouth when he talks about us with his keith and kin out of our hearing? zambians, zambians, wake up. ati we are advanced and not racist because we can elect a white person to leadership, even feeling proud and protecting our muzungu against the nasty hh. nonsense bangwele!

    • comment-avatar
      Sam Chungu 4 years

      Don’t show your racist prejudice here.How can you say never trust a white man? Are all white men the same? Are all black men the same?

  • comment-avatar
    Ailing-Urine-Bag-Dictator 4 years

    Muzungu opusa uyu

  • comment-avatar
    Kay 4 years

    Nikalibe kuona muzungu opusa kuchila uyu! lol

  • comment-avatar
    mincher 4 years

    He is a chi chola she-man

  • comment-avatar
    webby 4 years

    zoona niwopusa muzungu uyu ayi

  • comment-avatar
    hachimona 4 years

    FATHER BWALYA SHOULD COME IN THE OPEN AND TELL US WHY HE LEFT.SOME TIMES THE WILL CATCH UP WITH YOU.DEEP DOWN YOU HEART YOU KNOW THAT WHAT YOU THOUGHT PF STOOD FOR IS NOT WHAT YOU SEE NOW.THE TRUTH FATHER ,THE TRUTH.OR YOU CAN DO WHAT OTHERS HAVE SAID TO YOU”4GIVE ME FATHER FOR I HAVE SINNED”

  • comment-avatar
    monde 4 years

    kupusa muzungu uyu .achoka kuti first coz mu zambia aweee uu.uu chi pf ichi

  • comment-avatar
    chicco membe 4 years

    what a stupid man. a white one !

  • comment-avatar
    True Love 4 years

    Stupid white man, these are the characteristics you need to comply with the PF regime. All normal humans would leave PF and this is why Father Bwalya has left. Only stupid white and black men will remain. For me Guy does not understand the economics of trade and investors. Such people should not be given an important position of Vice President!

  • comment-avatar

    its high time we prepared special prisons for such kind of fake men and women like pf thieves who are only milking zambia even when the country is half dead guy is one of them

  • comment-avatar
    mincher 4 years

    Scotty is now used to keeping his hand permanently before his nose, he smells urine even when he is nowhere state house.

  • comment-avatar
    mano pe 4 years

    SCOT PLZ HAVE PRINCIPLES. I THOT U WERE A MAN OF PRINCIPLES, ALAS, FAKE VP WHO HAS BEEN DILUTED AND SWALLOWED BY THE COBRA…..NO PRINCIPLES FROM THE WHITE MAN

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    Kaufella 4 years

    Scott shoud fix the bottom of his bucket, before more money is poured in. 90 per cent of money is not accouted for, , he knows, but is failed to fix it.If only he can do that, things will be perfect. U dont have to go far. Mr Scott, u just said it last month, Zambians are thieves, own up.Zambia railways, ?? who u trying to full, in u we thought we had a brighter future but looks like, HH was right.Only tax evaders are winning. law abiding are running away.

  • comment-avatar

    There he goes again this stupid white man,

  • comment-avatar
    lint 4 years

    The wise saying is- If you do not have anything meaningful to say, keep quiet.

    • comment-avatar
      larry evance 4 years

      @lint i can add on ‘ keep quite or confirm to be dull”

  • comment-avatar
    Analysit 4 years

    Why is that pig yapping red around the collar?

  • comment-avatar
    Chilufyanya Satana 4 years

    I know one day nd soon, hh will be vindicted on this man,just as he is on Ukwa MCs as a “chimbwi no plan”

  • comment-avatar

    oNCE AGAIN, mR sCOTT IS ONLY TOWING THE PARTY AND GOVERNMENT DIRECTION….TOWARDS DISASTER.

  • comment-avatar
    chulu 4 years

    i wonder where this tired and foolish white man is helping drive this country to! HH was rt, ni muzungu wopusa

  • comment-avatar

    A stupid white man. This level of ineptness is embarassing

  • comment-avatar

    chimbwi ya white no plan