EXPECTATIONS are high, as Finance and National Planning Minister Alexander Chikwanda climbs the stairs of ‘Manda Hill’ to unveil the contents of the copper-coated briefcase – the 2012 National Budget, the first under the Patriotic Front (PF) Government. During the campaign, the PF made promises, chief among them, giving tax relief to workers for them to have “more money in the pockets.”
Mr Chikwanda, a graduate of Lund University in Sweden, is likely to adjust the exempt threshold from K1 million to about K1.5 million and revisit the tax bands which range from 25 to 35 per cent while Value-Added Tax (VAT) at 16 per cent may take a downward trend.
Thought VAT is an indirect tax, its reduction will give some comfort to the private sector players as their goods and services will in effect follow a downward trend. This would benefit consumers because goods and services will be affordable while on the other hand sales will shore up for the private sector because the turn-over will increase. To compensate for loss of revenue, the sure recourse is increasing the mineral royalties, currently at three per cent, corporate tax to rise from 35 while the variable profit tax should equally be revised upwards in the mining sector.
In his Budget presentation, it is anticipated that Mr Chikwanda will indicate other sources to balance the equation. Particularly, the Zambia Revenue Authority should capture the untaxed informal sector. The challenge though is for the new Government to fork out a K4 trillion from today’s Budget to finance hurriedly contracted road projects by the previous administration in the run-up to the September 20 tripartite polls.
In effect, the K4 trillion may translate into about 25 per cent of the total 2012 Budget. In his opening speech to Parliament, President Michael Sata said his Government would focus on infrastructure development, agriculture, tourism, local Government and housing, commerce and trade, among priority sectors.
Infrastructure and social sector development in the 2011 MMD Budget was allocated 50 per cent. Of the K20.5 trillion National Budget presented last year, K15 trillion came from taxes, K539 billion from non-tax revenue while K1.6 trillion came in as Budget and project support from cooperating partners.
Additionally, K1.2 trillion came from domestic borrowing while K1.9 trillion was sourced externally. In infrastructure development allocation, the manufacturing sector is likely to benefit through establishment of more multi-facility economic zones, a model the PF has pledged to continue with.
It is expected that emphasis will be placed on employment creation in various sectors, particularly for the youth. Job creation, investment growth, well-structured health and education sectors, accelerated diversification from copper mining to other equally critical sectors of the economy will be the basis upon which the PF Government will undertake an effective public service delivery.
[Times of Zambia]
Lelo lelo, lelo lelo….. tizanvelako baaba, mo chidunku in my pocket!!!
The count down is on. i am already wearing a slack with twelve pockets.i think i should add a few more pockets.
We in the diaspora wont even benefit from the good budget done by our centre right leftist government. But its fine. as long as it helps our poverty stricken colleagues back home so that they can one day afford KFC at Manda Hill ( when they have more money in their pockets). Bane, dont just look to government. Be resourceful, dont just work from 10 to 12 hours. When you knock off, get part time job with the council and clean toilets at Soweto or sell vitumbuwa en not just rushing to Musana.com. that way u earn extra cash.
where wud the kaponya family get govt revenue if they reduce PAYE and raise the tax threshold? Just encourage people to work hard on their own, dont give them handouts, its not sustainable! Infact I wud advise them to increase the PAYE so that revenue collected from the ‘working minority’ can help the ‘majority poor and the less privileged’, to ensure equal distribution of resources!
Ba Simunyola you first need to give people a firm base to stand on before hitting them where you know they will need to land safely. PAYE is abnormal in this country whilst grz expenditure is high. we just need to allocate with extreme priority and we shall have money in our pockets. I am not PF but i agree to the more money in the pocket ideology. It can work!!
You are not serious my friends,open your eyes and stop thinking like an *****!
I am not expecting much. remember revenue must balance with expenditure so dont expect high tax reductions. Dont kudabwa!!
Am waiting for my share of the cake as a citzen who voted for change, but last assured the budget will be for our benefit
Hahahahaha the old man is in shit, yes he needs to tell where the money will come from cause the main financial is tax.
Since the only expected was windfall & the gvmnt said they have to site & analyse before bringing it back, kanshi yalakosa.
Chikwanda ulesebana lelo…..wish u all the best.
Am PF tho & a tax payer!!!
I do not like recycle politicians so what they say I just can not take it. I am fed up of these old chaps who think they are the only ones who rule.
Am waiting for my share of the cake as a citzen who voted for change, but last assured the budget will be for our benefit. Go pf go zambia
I dont expect anything new from these retirees! The UNIP days are by far different from the dynamic today!
God is our Source…. No Government was setup to feed its people.
No.4,you are right.But what have the fresh chaps done apart from stealing from all of us tax payers?FTJ was fresh what happened?Many others you know them.
Cant wait.PF govt’s best test is on today. waiting..
Gosh,we’re still so far behind economically even after the “stellar” growth we achieved in the Banda years.Our 20trillion kwacha budget still only amounts to just $4b US dollars.Even on that we still get 2-3tr kwacha from “development partners”.Compare to our sister states in the our neighborhood-Angola US$32 bn,SA US$88bn,Tz US$ 8bn,Kenya US $13.5bn and Botswana US$ 7bn.We’re still a baby even with Sata’s “more money in your pocket”
WE NEED A COPY OF THE BUDGET PLEASE.
Still waiting anxiously !!! But there will be no much difference as things are being worked on.We will be very fair if we give this goverment exactly the time that RB had in power so we can compare.Let us move forawrd together and build this nation.
We are patiently waiting for first budget under PF govt. Am more interested with what the goals are for MSME. It is these guys that can truly put more money in the pockets of zambian and not the Govt. The challenge therefore is the policies and measures Mr. Chikwanda will pronounce to give the much needed attention and life to such. Lets wait and see.
EDITOR- Where did you get the figure of K4 Trillion for ” hurriedly constructed roads”. This is just a propaganda figure. You are a neutral newspaper. If you really want to know, the roads under urban rehabilitation were fully funded by the government and the money disbursed to the road sector agencies. It wont come from the 2012 budget.
There is a simple rule of thumb for journalists – Every statement by a politician should be checked.
“…on the stairs of MANDA HILL” is this at the famous manda hill mall????
number 3….u are not being realistic. increasing paye!! look at the salaries the zambian gets…consider the cost of living (rentals, utilities school fees…e.t.c). they must tax the mines a lot more and encourage csr programmes from the mine owners to develop roads and hospitals..M.Ps allowances and gratuity must be slashed by 80% too. how do you pay 150 guys 2.5 billion each, and thats from the paye u are toking about…open your eyes.
PF Government has made a lot mistakes in a short period of time they have been in power but this is their best chance to redeem themselves.I do not expect miracles but i think they can do something to save their faces.I hope Chikwanda has prepared himself adequately on this matter and that he is going to meet about 75% of people’s expections.Maximum % for Paye should be reduced by not less than 5%.They should bring it to 30% or even less.No shifting of figures will be entertained.Many are the times when figures have been shuffled around to make things look like they are good and yet the net effect is minimal.
Reduce duties on importation of cars currenty at 100% and you think corruption can go down at least graduate it 100% for cars 10 years or older, 50% from 5 to 10 years old and 20% percent for cars 0 to 5 years….the loss if any can be adjusted from the windfall tax fom the mines, increase in luxury goods such as alcholo and cigarettes….which should be taxed at 80-75%
number 3…why must you expect a few people to work hard and pay for you? We also have our own problems to solve and so the rest of you must also work hard either get a job if you can or start a business not just expecting a few individuals to pay high taxes. We are already over taxed!
Can’t wait to see what the PF government has in store for Zamibans. I expect a pro-poor budget. Many Zambians are wallowing in poverty when the country is supposed to be rich!
@ 20 Mwandi, uri right! There is need to have a tax regime that is not only pro-poor, but also pro-environment and dynamic. Graduation of tax on motor vehicles and higher taxes on cigarrettes and alcohol are very good ideas that are embraced even by developed countries. A pro-poor budget is a balancing of capitalist development and socialist redistribution of wealth leading to growth in SMEs. Therefore reduction of PAYE to allow for more disposable income in low – middle income groups is good for growth of businesses leading to a growth in the GDP. It is imperative for this government also to have policies that ensure ZRA can collect all tax that can be collected from foreign investors without corrupt – political interference. So Bo Alexander, let’s see how good you are at this!
Waiting patiently!!Takuli kudabwa!
@number 3 i think you are not serious…. we are already overtaxed and you expect to be getting even a lot more how are we going to survive?? Be intouch with reality …..
This we shall have no budget bafikala. Just ask for money and we give you. we shall budget next year
Encourage people to work hard and to work for themselves…..
Hon Minister/Mr President,
Please lower the investment threshold so that we can bring inward investment into this great land and create employment.
Kuluku Lukuku, Musana.com?…elaborate some more please, kekekekkeke…I hope its not what I am thinking, if it is…then u have really made my day!!!!
P.A.Y.E 20% DONT KUBEBA
PF just prover yourself today to shame the devils MMD-UPND because they have provoked too much,you are our only hope so don’t disappoint us mr finance minister,remember the promises your government were making during campaigns,failing to fulfil in today’s budget representation will arise alot of havoc especially to us youths who have no jobs today.
I hope the PF govnt should increase the tax base to include the informal sector so that the formal sector can have a breather of some kind, but is this possible with the current set up in Zambia?, can someone educate me please.
lets see what happens, i really feel for our women who go to collect clothes to south africa maybe just in a bag of mealie meal (about 25 kgs). these pipo pay a lot of money to customs than the ratio of a full truck load carrying valuable goods. what are we doing about this. we must learn to promote our zambian women and
Lets see what today’s buget represention will help zambia.Remember PF raised alot of good policies thats why zambians were very attracted to there policies,so we expect alot in today’s budget from the new government,viva PF
SHI MWANSA: Tumumfwa iwe. Theres Musana.com in Kabwata – a bar and Musana.com at your home kekekeke
Bob Sichinga or someone else should have been the Finance Minister and not this Chikwanda-he is too old to grasp modern economics-he belongs to the old bookkeeping era!!
AC is indeed from the old bookkeeping era that did not know how to doctor books in order to steal from the public purse.
We have high expectations from the Budget.
#32 Shi Mwansa, it is nearly impossible to tax the informal sector in Zambia. That’s why it hs not been done. You’ll need such business people to keep receipts and to declare the income.
More money in the pocket……..K2m tax threshold
K2,000,000 – 0%
K2,000,001 – 2,800,000 = 25%
K2,800,001 – 5,700,000 = 30%
K5,700,001 & above = 35%
Most of you chaps who have uselessly contributed pamulu apa you are just a bunch of loosers,tuna mutyola tyola….The money that was meant for every Zambian only a few benefited in the Mukudya Mweka Dad government,wait for reports from the commissioners..We are not going to take long like in the Task force issue,ifwe ngabakulumbula twakutwala ku court waleta na tu lawyer tu pompwe kwati this finished,fake politician we defeat them twapoka necuma mwavobola.
41, so the money should now be used by PF not MMD, whats the difference?
Good allocation to health in this budget. Hurray! Can someone buy some a’nti-umulilo wa kwa lesa bottocks’ from the minister for the good job please.