The United Party for National Development (UPND) has described the the 2019 National Budget presented by Finance Minister Margaret Mwanakatwe as the most useless budget the Patriotic Front (PF) government has ever presented in Parliament.
In a statement made available to the media and signed by the party Spokesperson, UPND appealed to all members of parliament to reject it
Below is the full statement
UPND STATEMENT FOR IMMEDIATE RELEASE.
14TH OCTOBER 2019.
REJECT 2019 NATIONAL BUDGET.
The National Budget announced by Finance Minister Margaret Mwanakatwe is the most useless budget the Patriotic Front (PF) government has ever presented in Parliament.
As the United Party for National Development ( UPND ), we would like to appeal to all the Honourable Members of Parliament to reject the budget. There are many reasons for rejecting the 2019 national budget but here are a few reasons:
1. The budget has put more taxes in people’s pockets instead of putting more money in their pockets.
For the first time in the history of the PF government, the Minister of Finance offered NO TAX RELIEF to workers. The suffering workers will continue to pay huge PAYE amounting to K11.4 billion through the nose to meet the luxury life styles of the Apamwambas. The workers will pay K11.4billion which is more than all the companies in Zambia combined at K7.5 billion.
To make matters worse, the minister hid alot of fees and fines which people are going to start paying under non-tax revenue. The minister merely stated that she will introduce cost-reflective tariffs under non-tax revenue. What this means is that government will start unleashing statutory instruments to increase fees and fines. The country has already tested Mwanakatwe’s medicine on cost-reflective tariffs through the increase in fuel prices a few hours after the presentation of the national budget. New electricity tariffs are also coming. Fees for things like licences, traffic offences, title deeds, court fees, market levies, education and health are likely to be hiked.
The issue is that government is there to provide a service and not to make profits. People pay taxes to enable government to provide various services. Government should not be in the business of reaping profit from poor people.
The taxation in the 2019 national budget has so been reckless that it will kill the goose that lays the golden egg. The minister targeted small scale businesses to collect more taxes by increasing the turnover tax to 4% from 3% previously. Small businesses must be nurtured and given incentives to grow and prosper rather than choking them with unaffordable higher taxes.
Similarly, abolishing the Value Added Tax (VAT) and re-introducing the Sales Tax will push up costs for industry that add value to their products. In this modern age and error where most economies in the world are finding it prudent and fashionable to go for the VAT system, it is strange for Zambia to take 20 steps backwards and resurrect the dead and buried Sales Tax. We are back to the UNIP days of sales tax!
Claiming VAT on inputs was helping industry to lower costs of production. If the government was having problems with the mines on VAT refunds, they should have resolved the issue within the mining sector rather than extending it to the whole economy. The problem of collection and utilisation of VAT was that the Zambia Revenue Authority was collecting the VAT on inputs and surrendering it to government for immediate consumption instead of reserving it for a possible refund for a specified period. When people were making the VAT claims for refund, the government had already chewed the money. The problem is not the VAT. The problem is the government which is reckless in expenditure.
Sales Tax will hurt the poor people more. With the introduction of the Sales Tax, whose rate was not revealed in the budget, prices of goods and services will shoot up.
2. The 2019 nationalbudget is a “Kaloba Budget “. Most of the money in the budget will go towards paying both external and internal debt. External debt payment is estimated at K14.9 billion while domestic debt payment is K8.6 billion , giving a combined total figure of K23.6 billion. This amount allocated for debt service is more than the budget for many ministries. For example, the whole budget for the Ministry of Health is K8 billion only. The money for nkongole is also more than that for education which was allocated K13.2 billion compared to K23.6 billion for debt service. The implication of this is that the delivery of health and education services is going to suffer. Money for social protection such as pension, social cash transfer, food security pack and public welfare security scheme will be diverted to pay kaloba in the budget. Despite the debt service being high already, the PF government still wants to borrow more money. That is being reckless.
3. The 2019 national budget is a budget for teargas. About K2.9 billion has been allocated for public order and safety. What is the PF government scared of for them to plan to spend more on public order? We cannot have a government that is scared of its own people. The UPND will not endorse a budget that intends to buy more teargas and bullets for the police. The country has already lost an innocent girl at the University of Zambia due to police brutality and teargas. UPND has in the past lost some of its members like Mapenzi Chibulo due to trigger happy cops. We cannot be part of a scheme to buy weapons that are going to be used against our own people.
Because of the reasons outlined above and many more reasons too numerous to outline in this article, we the UPND have decided to reject the 2019 national budget.
Issued by:
Charles Kakoma,
UPND Spokesperson
Ok, this is the type of opposition politics we are looking for, where figures are disputed and some details attached to justify action. HOWEVER, before you can gain full support in rejecting the Budget, COULD YOU PLEASE ALSO COME OR PUBLISH AN ALTERNATIVE? CERTAINLY THERE ARE A FEW OBVIOUS ISSUES;reduce expenditure on Defense, stop contracting more debts and RELOOK THE ISSUE OF VAT vs SALES TAX as even its implementation will be too hard for ZRA as there is NO CAPACITY IN SALES TAX IMPLEMENTATION!! IT IS GRATIFYNG TO NOTE THAT YOU HAVE NOT CONDEMNED INCREASING TAXES ON MINES, I hope that is not among the “Many other reasons, too numerous to mention”
Keep it between yourselves UPND, why does the public need to know, send this letter to the MP’s who you want to abide by your proposal.
I have a Phd
Thanks
BB2014,2016
And the man qualifies to be the most useless spokesperson zambia has ever had.
IT IS SUPPOSED TO BE THE PEOPLES BUDGET. AND SO IT WILL PASS WITH OR WITHOUT THE TIME WASTERS. FLIP FLOPPERS. PARLEY WALKOUTERS. THE UPNDEADS. CHAPS WHO WON’T HAVE A CLUE WHY THEY ARE THERE. SADLY, LIKE TRAILERS ON HEAVILY LOADED TRUCK, THEY WILL HEED. DOUBLE H HAS COMMANDED.
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He lauded it just after its presentation this Kakoma. Now he is following his master’s call. Diabolical indeed.
UPND’s face of TRIBALISM on display HAGAIN.
What’s the meaning of Error?
Everyone knows HH murdered the UNZA student to try to bring confusion in the country. That’s why HH is worried about the budget allocated to public order and safety. He is a murderer and an arsonist who would sacrifice his fellow T0NGAS to try to win sympathy.
UPND MPs will not be boycotting anything. They know where their bread is buttered and they don’t have the numbers or clout to effect any policy!
Mmmmmmmmmmmm?
HH killing an UNZA student??………My foot! That’s a very serious allegation. So HH sent those cops to go and teargas students’ hostels? Bane if we do not have anything sensible to say do not comment.
Lost sheep. What happened the culture of UPND making an alternative budget? The brains left UPND. Mwebantu, which illicit brew does Jack Mwiimbu drink? I don’t think it’s jemasoni
I agree with the tax regime imposed on the mining industry, the rest of the budget is not balanced enough, the way they want to collect revenue is a bit to questionable on the over taxed Zambian work force and some of the expenditure is questionable as well, Agriculture allocation 2.7 Billon Kwacha same as Teargas allocation a bit, 4.6 Billion to be collected via traffic fines, what if people don’t break the law where does that leave you……. Taxes on soft drink and nothing on Alcohol, this is supposed to be a sin tax that every nation increases every year
Give us an alternative, it would be so nice to see how your budget will be without taxing us and still keep mine taxes less. I for one would have loved to see a reduction in salaries and allowances for cabinet ministers and mps. Of course this would not raise a substantial amount to get us out of the debt but It would have been good for us to see that we are in this mess together. I think positive perception is very important, the current perception about Grz handling the economy is not positive. Worse off is that we are not getting sound alternative ideas too
Like many well meaning citizens, we WELCOME the criticism.
However,why are you NOT producing an alternative budget?
UPND is so lazy and pretentious.
They just don’t have the brains to produce an alternative budget.
No wonder they are called calculator boys.
No economic analysis but calculator chabe.
Ndimwe vipuba mwavela?
no alternative budget is permissible by law… An ill flawed budget will run inn 2019… Truly it is a bad budget…
it has prepared by casually and the only alternative is to allow Tayali prepare one…..
Until PF admit it is flawed budget , UPND is not obliged by law to prepare a budget.. PF has a cabinet which heavily paid without tax deducted as such they must consult…….
it is like your father who poorly run his home and he want a child to got to work to subsidise him why he continues his extravagance……. I cant give an alternative because PF is arrogant
robmwale – We are not looking about “being mandated by law”, we are looking at constructive criticism. Mazoka was able to produce a shadow Budget.
Its a shame and dangerous to have a opposition party who for 20 years can’t no why they have been losing elections.
1- the way you oppose it make s govt win sympathy from people
2-destroying things to show govt is not caring people know it done by u.
3-using same people in presidential, parliamentary etc as if these are the only people in the party or in the country.
4-treating certain tribes as owners of the party.
5-list endless
Propal—learn to keep quite in most case and leave people tell u to act eg on delayed public worker’s salaries. Its workers who will tell u to say something.
—actually u should protect other than destroy.
So far as UPND is concerned, there’s absolutely nothing good about the budget …. mmmmm a very difficult proposition to make to an independent reader!!
Mazoka budget was not backed by law…. it was a political gimmick…… constructive criticism based on law is the best solution…..
PF can charge you of treason … their level of thinking keep me wondering….. PF loves insults, demeaning others, very arrogant and above loves to be praised..
Very typical of Hakaluza Heka! What on earth hasn’t he tried to discredit President Lungu and the PF? Anyway it only takes someone like Kakoma not to realize that his boss, HH is infact the biggest hindrance UPND has. Just imagine being in opposition for so long and losing so badly many a times, yet no one, no one to get the guts to oust out.
Am even very surprised that the West have not publicly challenged HH to step aside for others to try their luck. Could it be that they also understand that UPND is infact a tribal faction which cant go anywhere? Goshhhhh!!!
PF must ensure that HH and UPND is completely erased from the people’s memories in 2021 and I know this will happen.
Have the UPND MPs rejected the recently increased salaries for all members of parliament? Have they even commented about it. Anyway UPND has been rejecting, boycotting and opposing everything since HH took over but Zambia is still moving on with its activities. The is the beauty of democracy- the majority rules.
I hope you also don’t get your allowances and salary which are budgeted in 2019. If you get them you are fools
what can dandahead learn from this well articulate artcle ,nothing can land into their empty skulls meanwhile the the harsh economy knows no party all are to suffer.
Chicken little. Very soon it will be 2019 with a wrap through the same Budget your are ditching. What difference would you have made? I don’t remember the updeads never damning any precious PF budget. Besides if you ALL agree that the budget is superb, just know that ni wire.
Lets roll.
Yaba nao uyu Kakoma, where did he suddenly creep from?
Reject the budget? Uli mbuli iwe Kakoma?
How can they do that when their latest salary increments are in the same budget? If they reject then pay and perks would not happen. Which MP (opposition and ruling) would do that
Kakoma nimbwa fye.
UPND a party with no brains but have only big mouth. Cimbwi no plan is equal to UPND.
PF D!ckhead has spoken!
PAYE is the biggest source of tax since all income ultimately accrues to people. Hence, investors are required to guarantee local jobs. In fact, in many places, PAYE is the only Tax paid. Denkede killing the brain indeed. Zambia should quickly require every individual to file a tax return & to list shares on stock exchange if they do elsewhere to mobilise the massive local resources like what South Africa does. Bold measures in the budget to control things like transfer pricing will enhance local earnings & enhance PAYE on investors too.
The 2019 Budget is rivetingly bold with lots of new dynamism typical of Pf grandeur vision of Zambia. Those who don’t support boldness are doomed to fail like UPND.
Which ever opposition MP who does not support the budget, punish them by not giving them constituency development fund and we shall see who has power over treasury tit for tat because they can’t have it both ways or simply put you can’t eat with both hands.