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Alba Iulia
Saturday, April 17, 2021

Magande to unveil Zambia’s budget tomorrow

Economy Magande to unveil Zambia's budget tomorrow

Finance and planning Minister Ngandu Magande is tomorrow expected to present the national budget which will spell out the country’s economic objectives to be attained this year.

Various stakeholders have high expectations in this year’s budget following the good performance of the economy last year.

Government has so far cheered a cross section of society that had over the years called on the New Deal Government to review taxes in the mining sector.

Mr. Magande is expected to spell out new taxes in the sector following the conclusion of work by the mining negotiating team appointed to review and recommend taxes to be introduced.

The United National Party for Development (UPND) has since advised government to plough back in communities where monies are operating, at least 5 percent mineral royalty and 10 percent windfall tax.

The party has further advised government to increase the current VISA fees from US$ 25 per person to at least US$ 50 per person.

Party Spokesperson Charles Kakoma said the visa waiver should be removed stated that foreign tourists pay the Visa fees abroad to tour operates who don’t declare it to Zambian authorities.

It is hoped that the new tax measure would increase the revenue that would now be generated from the sector unlike in the previous year.

Last year, Government under the budget theme from ‘stability to improved service delivery ‘managed to attain some of the macro economic policies set up for the year.

Government was set to achieve real Gross Domestic Product (GDP) growth rate of 7 percent, reduce inflation to 5 percent and reduce the government borrowing to 1.2 percent of GDP.

The 2007 nation budget which stood at K12 trillion was 72 percent financed locally while the remaining was to be sourced externally.

Government managed to attain a single digit inflation figure from 5 percent to 9 percent following the adverse inflation out turn in the first quarter.

Bank of Zambia Governor Dr. Caleb Fundanga last week stated that the country managed to attain single digit inflation for the second year in a row.

Yesterday, The Zambia Revenue Authority (ZRA) revealed that it collected K8.1 billion, surpassing the set target of K7,8 trillion of GDP.

ZRA commissioner Chriticles Mwansa attributed the revenue boost to increased collection under company tax, Pay As you Earn, Withholding Tax, exercise duty, import value added tax and medical levy

However, by the end of the year government departments, institutions and spending agencies failed to exhaust its allocations for developmental projects.

By the end of December, government had to mop up about K900 billion that was lying idle in the Central Bank and various commercial banks.

3 COMMENTS

  1. With ZRA reporting a surplus of over K300 billion and K900 billion still unutilised, and if they seal the loopholes in ZRA [who are capable of collecting more if all transactions were recorded], and the increased taxes for the mines, I expect Magande to fully finance the 2008 budget from local resources.

  2. I hope they are going to produce a budget they will foster development and one that will tackle inflation and interest rates risk.

Comments are closed.

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