LONDON, March 2 (Reuters) – British parliamentarians
have invited commodities trader Glencore and other
unnamed companies in the resources sector to testify next month
as part of an inquiry into tax in developing countries.
Parliament’s International Development Committee monitors
the work of the Department for International Development and is
probing tax payments and tax avoidance in the developing world.
It has focused its investigation on Zambia, a copper
producing giant where Glencore operates alongside other miners
including Vedanta Resources and First Quantum.
A number of non-governmental organisations, but also Rio
Tinto and brewer SABMiller, have already
submitted written evidence as part of the inquiry.
Zambia is Africa’s top copper producer, but it is one of the
world’s poorest countries, and its revenue from the sector
accounts for barely 1 percent of government revenue. It said
last month that it would audit all of its mining houses to dig
for back taxes of up to $1 billion.
The committee quotes an estimated $160 billion each year
lost by the developing world because of tax avoidance by
multinationals.
“We are happy to take part in this inquiry, about taxation
in developing countries,” said a spokesman for Glencore, which
owns Mopani Copper Mines, one of Zambia’s largest producers.
“Mopani makes a major economic contribution to Zambia,
providing over 17,000 jobs, paying its taxes, and making
substantial voluntary contributions in education, health and
infrastructure development.”
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