Saturday, June 15, 2024

Mwanakatwe hikes mining taxes in her K86 billion budget (UPDATED)

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Minister of Finance ,Margaret Mwanakatwe arrives at parliament building for 2019 National budget presentation in Lusaka.
Minister of Finance ,Margaret Mwanakatwe arrives at parliament building for 2019 National budget presentation in Lusaka.

Finance Minister Margaret Mwanakatwe has announced that Zambia will introduce new mining duties and increase royalties to help bring down mounting debt and cut its fiscal deficit.

Mrs Mwanakatwe announced this when she presented a K86.8 billion budget to Parliament this afternoon.

Mrs. Mwanakatwe announced plans to increase the country’s sliding scale for royalties of 3 to 9 percent by 1.5 percentage points.

The scale is adjusted so royalties are paid at higher levels as commodity prices climb and are reduced as prices fall.

A new 15 percent export duty on precious metals, including gold and gemstones, will be introduced, while copper and cobalt concentrate imports will incur a new 5 percent levy.

“As mineral resources are a depleting resource, it is vital to structure an effective fiscal regime for the mining sector to ensure that Zambians benefit from the mineral wealth our country is blessed with,” Mrs. Mwanakatwe said.

She said Zambia planned to cut its fiscal deficit to 6.5 percent of gross domestic product (GDP) in 2019 from 7.4 percent this year.

Mrs Mwanakatwe also revealed that the Zambian economy was expected to grow at least 4 percent in 2019, around the same level as a forecast for this year.

 

2019 Government Budget Revenue Sources
2019 Government Budget Revenue Sources
2019 Government Budget Expenditure
2019 Government Budget Expenditure
Chinese delegates arrive at parliament building for eagerly-anticipated 2019 national budget in Lusaka.
Chinese delegates arrive at parliament building for eagerly-anticipated 2019 national budget in Lusaka.
Chinese Counselor to Zambia,Lai Bo is welcomed by Deputy Secretary to cabinet,Christopher Mvunga during the 2019 national budget in Lusaka.
Chinese Counselor to Zambia,Lai Bo is welcomed by Deputy Secretary to cabinet,Christopher Mvunga during the 2019 national
budget in Lusaka.
Minister of Finance ,Margaret Mwanakatwe arrives at parliament building to presents eagerly-anticipated 2019 national budget in Lusaka.
Minister of Finance ,Margaret Mwanakatwe arrives at parliament
building to presents eagerly-anticipated 2019 national budget in
Lusaka.
Minister of Finance ,Margaret Mwanakatwe with Hon.Richard Musukwa at parliament building for 2019 National budget presentation in Lusaka.
Minister of Finance ,Margaret Mwanakatwe with Hon.Richard
Musukwa at parliament building for 2019 National budget presentation
in Lusaka.
Minister of Finance ,Margaret Mwanakatwe(m) pose for a photograph with Member of parliament before 2019 National budget presentation in Lusaka.
Minister of Finance ,Margaret Mwanakatwe(m) pose for a
photograph with Member of parliament before 2019 National budget
presentation in Lusaka.
Minister of Finance ,Margaret Mwanakatwe confers wioth Former Minister of Finance Situmbeko Musokwatwane before 2019 National budget presentation in Lusaka.
Minister of Finance ,Margaret Mwanakatwe confers wioth Former
Minister of Finance Situmbeko Musokwatwane before 2019 National budget
presentation in Lusaka.
Finance Minister ,Margaret Mwanakatwe addresses the nation during presentation of 2019 eagerly-anticipated 2019 national budget in Lusaka.
Finance Minister ,Margaret Mwanakatwe addresses the nation
during presentation of 2019 eagerly-anticipated 2019 national budget
in Lusaka.

56 COMMENTS

    • She’s going to deny that she didn’t inroduce the taxes to the Mines when the alcohol content reduces in the blood.
      However, it’s a good move. Otherwise, we need to get to 51% share holding in these Mines which Kaunda left us.

    • Some good points in the budget. especially on the mining tax regime. But my worry is always implementation. Once the mines push back strongly enough these guys quickly change.
      One point that should be addressed is the price of electricity to the mines. It’s unsustainable for grz to subsidise these mining giants. ZESCO must be selling power to the mines at a profit and not a loss. These mines can afford a large host of “expatriates” and they pay them huge sums. Why should we allow this and then subsidize power. That is ridiculous. We seriously need to put these mines on notice. Invite other investers to tour the mines so that they understand that they are not untouchable

    • After reading HH’s statement earlier, this is hollow coming from Margaret. The PF should swallow their pride and consult HH on the economy. This is not a partisan issue, It is about all our lives!!

    • Which mines are they going to tax coz KCM is already dead and they have not even giving the mines their VAT back, I was young and now i am old yet i have never seen anything said in the budget in Zambia implemented, Its all nice talk, Like my mum used to say ati upuname.

    • Just looking at the breakdown of the 2019 National Budget by Classification Of the Functions Of Government (COFOG) in comparison to the 2018 National Budget on ZIPAR Facebook page ..it looks like govt has cut back on Education and Health but increased on Defence.

    • @1.2:journeyman- It’s not just implementation, the monitoring part is so porous. You can declare one metal and export another easy because GSD is badly equipped. If you had an equipped meturlagist watching production working with specially trained ZRA guys stationed at the mines advising their colleagues at the borders, it would be better.

    • Ba Musukwa please give respect kubakashi Ba banenu, that picture is in bad taste holding the finance minister around her waist is not on, what was the big idea?

  1. Looking at the pictures I can conclude that Upnd is not a bad party, it’s only HH who’s evil. See how Dr Sotumbeko is welcoming Margaret. ..with joy and humility.

  2. Why Chinese presiding at the national event? The world gets stranger by the day… They are even driving GRZ registered vehicles so maybe we have become a Chinese province. Anyway you can get the mining royalties and “putting” where the social cash transfers disappeared, and say onani boss ni “just OK”

    • All countries were represented but the reporter for reasons known to themselves only showed the Chinese. Unless you are not familiar with our budget presentation you believe that the Chinese are in control

  3. Very good measure by the cabinet to increase tax on mines.

    Congrats to Hon. Mwanakatwe for a well presented budget speech.

    Excellent measures proposed e.g. increase tax on plastic producers
    Reduced tax on manifucting and value addition institutions.

    Increased budget for Agriculture and livestock.

    Increased funding for rural electrification

  4. Alternative Facts Fake News S**thole Countries Social Mobility Chinese Zambia Police Reservists Corruption scandals: Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans Alternative Facts Fake News S**thole Countries Social Mobility Chinese Zambia Police Reservists Corruption scandals: Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans

    A good move of taxing mining loyalty at higher rates but I wonder if this was based on proper research or it was done haphazardly and on impulse, lifting bloggers’ talking points on here. Did they do comprehensive and independent research and consultation to see what impact such a move would have and mitigation strategies put into place for any eventualities.

    What is the rest of the budget like?

  5. Mining royalty hikes are long overdue. Over decades, so much wealth in copper reserves has left the country literally tax-free and ended up as a catalyst of economic growth in European, American and Asian economies.

    Now that they are beginning to read the signs, appropriate measures must be put in place to keep the country geared to fend off exploitation by multinational companies and withstand any economic crisis.

  6. I hope they won’t back-paddle like they have been doing always.When mines houses complain,they go on the round table to adjust what is in the budget rendering the budget plan irrelevant.

    Government needs to stick to it’s budget implementation.It should be a yardstick to guide fiscal policies they have put in place.Otherwise,it will be an exercise in futility if implementation is not adhered to.Let it act as a tool of planning and motivating the downcast citizenry.
    We need to stick to all the plans that has been formulated in the budget.

  7. I wonder WHAT REAL GREAT CHANGE IT IS IF THE MINERAL ROYALTY TAXES ARE EXPECTED TO CONTRIBUTE ALMOST THE SAME AMOUNT AS FEES and FINES WHICH ARE BORNE BY COMMON ZAMBIANS!! In addition to this MINIMAL increase in Royalty taxes, WE NEED TO COMPEL THE MINES TO PAY ECONOMIC RATES FOR ELECTRICITY SO THAT WE CAN REDEEM THE LOANS CONTRACTED ON BEHALF OF ZESCO!! In the longer term, please build infrastructure for monitoring exports and bring back SIs 32 and 55 to make mining companies more accountable!!

    • They own you .. let me put it this way ..you are basically their black slaves or their b%tche$ …maybe you want to be soothed with lies to make you feel better like they are your “all weather” friends whatever that means but I am not a religious person I tell you the truth!!

  8. Can someone clarify the presentation – totals (shaded rows) and items (rows not shaded) making up those totals in the Expenditure by Function of Government Table. For example under General Public Services the total is K31.2 billion, but the individual items do not make up that total. The trend is the same for all the functions where you have more than one item making up the function total.
    The Revenue Table has no problem – totals can easily be seen to be made from the constituent items.

  9. God damn this woman is ugly! I mean, she lends full credence to the belief that humans are descended from apes, I mean look at the shear size of her nostrils, they are baboonic! And I also hear she is seriously alcoholic and loves adulterous illegal promiscuous s.ex with boys!

  10. While Angola presents her $46bn budget and Kenya presents a $30bn budget wer in Zambia are stuck with a ka-small $7bn budget due to Lungu’s misguided leadership.

    • DON’T JUST COMMENT ON SOMETHING YOU DON’T KNOW.IF YOU SAY 46 BN FOR ANGOLA 30 BN FOR KENYA WHAT IS THEIR GDP AS COMPARED TO ZAMBIA’S . JUST SIT DOWN

    • So why can’t we have a budget or GDP like those ? Heck, why not even a bigger GDP like Taiwan or Norway? Don’t talk as if these guys are superhuman and Zambians are mere neanderthals with smaller brains.

    • FYI the GDP of Sweden is some $600bn for a population of only 10m people.Why not Zambia or you’re just talking things you don’t know?

  11. There is really no need for personal attacks. lets keep it very civil. attacking her personally is not good, we are free to attack her credibility, don’t attack her as person,she is just doing what the BOSS asked her to do. She is a lady, a mother, a wife, a sister. Politics aside lets be civil.

  12. KA BUDGET IS TOO SMALL JUST KA ONE PAGE PENZA, EMMANUEL KASONDE, KATELE KALUMBA ,CHIKWANDA COULD HAMMER 54 PAGES, DOUBLE SPACING , FONT SIZE 68 ETC

  13. Am not keen fashion follower but feel an English suit would’ve been more ideal for the occasion or at least to match it with her husband . the disharmony is even made worse by the daughter’s outfit lam afraid. We’re far from economic independence and for once let us forego this fallacy of believing that adorning ourselves in so called traditional garbs will ever free us from underlying shortcomings

    • Free yourself from colonial mentality. Why is an English or Western outfit more suited than the outfit she’s wearing? In fact the husband should have found himself chitenge outfit. They’re plenty these days. He’s the one who messed up the whole look. Having shortcomings does not mean we should be ashamed of our identity. Even Westerners have shortcomings but do they try to discard their identity because of that? To err is human my friend.

  14. I do not appreciate ugly women, they revile me! Disgusting! Just look at the skewed shape of her lips too, it’s because of the whisky Black Label she is swallowing through them like a vulture beak that has skewed them so badly! Kuipa pamenso, onani na bamuna bakaena chimpuno monga njovu.

    • Alternative Facts Fake News S**thole Countries Social Mobility Chinese Zambia Police Reservists Corruption scandals: Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans Alternative Facts Fake News S**thole Countries Social Mobility Chinese Zambia Police Reservists Corruption scandals: Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans

      Mate you are sick and you need to get your brains checked. What has her looks got to do with the quality of her budget? People like you are the very reason Africa still lags at the bottom of the human progressive ladder. Keep your views about her looks to yourself or better still why don’t you post your own pictures so we can analyze them on comment on it.

      Listen buddy, the most glamorous beauties are in the beauty modeling world and don’t run countries. Angela Merkel isn’t the Miss Universe beauty queen but I can sure guarantee you she runs the affairs of one of the most powerful countries in the world with strong economy unmatched anywhere in europe. Get real and get a life mate!

  15. Miners (Bashi Mine), especially Malingerers, should prepare to be downsized, especially for mines with very low Ore grade which have to closely watch their cost margins!
    Sad we have to punish someone to make up for our own mess arising from fiscal indiscipline and collateral damage is inevitable! Overall, well balanced Budget!

  16. #26 Njangwamuloty, I think it’s because of your name, the rest of us have no problems with the way Our Lord The Almighty God crafts his people. I personally would not pass a comment on your mother’s looks even if you questioned one aspect of her.

  17. Don’t you think that it’s the wearing of something not befitting the occasion that would actually amount to one being colonialist minded? And why should the need to appreciate art be banded with colonial mentality? My take on the idea of colonialist mentality is that its mere myth borne on inferiority complex that is also enshrouded in contemporary hypocrisies

  18. @ newbie, Don’t you think that it’s the wearing of something not befitting the occasion that would actually amount to one being colonialist minded? And why should the need to appreciate art be banded with colonial mentality? My take on the idea of colonialist mentality is that its mere myth borne on inferiority complex that is also enshrouded in contemporary hypocrisies

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