By Anthony Bwalya – UPND Member
Now more than ever, the United Party for National Development (UPND), in keeping with one of our fundamental founding principles – that of putting people back at the heart of economic growth and development; is committing to delivering a mamoth $1.5bn back into the economy by merely rearranging the tax models around Pay As you Earn (PAYE) and other SMEs business incentives.
With our economy currently dead in the trenches, suffocated by the culture of reckless borrowing and public spending by the Patriotic Front (PF) administration; as well as any prospects of recovery being thwarted by what is now government’s evidently diminished headroom to spend, the UPND would like to reiterate our unwavering resolve to deliver a well coordinated tax reform plan intended to reignite growth, and deliver opportunities for ordinary citizens to once again be able to take advantage of available opportunities in our country to not only spend, but also build SMEs and create jobs for the economy.
Part of our wider tax reform plan, is anchored on delivering additional tax relief for individuals; while giving unprecedented growth and capital protection incentives to SMEs; and this is envisaged to directly deliver well in excess of $1.5bn worth of a boost to the economy at a very basic, micro economic level, over a 5 year period.
HOW WOULD THIS PLAN WORK?
As a matter of economic common sense, $1bn is worth more to an economy when directly placed in the hands of micro economic actors (individuals, households and SMEs) than it being held, and dispensed with, by a corrupt, unconscionable government.
In fact, $1.5bn in the hands of the PF would see an enormous 63 Cents on every $1 lost to corruption at the hands of political actors and their private sector proxies.
$1.5bn in the hands of individual, households and SMEs will go substantively towards spending on things that matter most to our citizens – health, education, building and expanding small businesses and actually creating the jobs the PF government have failed to create in close to 10 years of tinkering at the highest level of politics.
The $1.5bn would see the cab drivers and bus drivers more than double their takings as people’s ability to spend on essential travel expands. We also expect our mothers selling Kapenta, vegetables and tomatoes increase their sales; as would our brothers selling electronic gadgets – as individuals and households get to have a bit more disposable income to dispense with.
This is why we have proposed to increase the lower tax exempt threshold by an extra K700, from the current K3,300 to K4,000; as well as proposing to cut the upper tax bracket by a massive 10%.
Now, as people spend more within the economy, we anticipate government stands to collect up to 30% more in consumption based taxes, as opposed to the current situation where micro economic spending is subdued owing to over taxation, and government failing to maximize the collection of consumption based taxes.
It is worth noting, that any part of the $1.5bn which consumers end up not spending or investing in SMEs business activities, will most likely end up as savings in our local banking jurisdiction or informal saving groups. Either way, it would have the net effect of driving interest rates down and therefore lowering the overall cost of money within the economy.
And as far as SMEs go, the UPND is disappointed that the PF have relentlessly been sacrificing and punishing SMEs by failing to deliver crucial business incentives to allow our SMEs protect the integrity of their capital and then proceed to growing their SMEs enterprises.
The PF administration have in close to 10 years of being in power, failed to deliver capital incentives for SMEs; as well as failing to deliver incentives for growth of these indispensable micro economic actors.
The UPND plans to deliver tax and other business incentives to allow SMEs achieve Two (2) things:
1. Protect the integrity of capital
2. Achieve business expansion without being penalized for doing so
This could mean the following:
1. Graduation of tax and other business levy obligations over a period of 5 years, with 0% obligations in year 1 of setting up and the final 100% of tax and other business levies due only applicable in year 5. This will allow SMEs a smooth path to growth and expansion.
2. Incentivize business expansion by ensuring that new business branches are not penalized on the performance of principal branches. This will encourage more SMEs to expand their reach and the process create more employment.
The following measures are also envisaged to prop up compliance in terms of tax and other business levies. This is one sure way of expanding our ever degenerating tax base.
IS THIS PLAN POSSIBLE?
Absolutely.
Since 2011 to date, Zambia has leaked close to $10bn in a combination of state sponsored corruption where PF officials and operatives abuse public processes to steal public resources. We have seen this from successive FIC reports, Auditor General’s Reports and CPI intimations, with Zambia having dropped several points on the assessment register.
We have also seen how the Ministry of Lands and Natural Resources diverted close to $100m of Mukula revenue into their own pockets, the undelivered but overpriced ambulances, the Fire Tenders…
We also know that on the Copperbelt province alone, government pays over 40,000 ghost workers per month. Expanding this statistic across our 10 provinces may mean that under the PF, the country is losing tens of millions of dollars paying salaries and other fringe benefits to over 100,000 ghost employees.
Therefore, with the right kind of political leadeship, it is possible for us to achieve crucial efficiencies around how our government works: and with that would come several millions of dollars in expenditure savings, money that can easily be channeled towards funding our $1.5bn tax reform plans.
We would like to reiterate, that our planned $1.5bn micro economic boost, staggered over a period of 5 years and anchored on robust reforms to part of our tax system, will be executed while a UPND administration continues to mobilize the much needed resources to invest in priority infrastructure as part of continuing to create an enabling environment in which micro economic actors can dispense with the $1bn cash injection.
This is what a responsible government should and could have done.
This is what a UPND GOVERNMENT plans to deliver.
Zambians, what are you waiting for? Don’t you want to go back to the Mwanawasa days? You have your last chance in 2021!
Let me get back to sleep and continue dreaming.
Anthony Bwalya stop hallucinating…let HH convince Zambians on things he can deliver stop day dreaming please or you decampaign HH with silly and unattainable plans…Zambians were fooled by Sata 90 days promise and they wont be fooled again…and do you have a meaningful Job Mr Anthony Bwalya or you just survive by being a UPND cadre….then you are also part of the problem
It would be interesting to hear what the PF plan is post 2021.
More taxes to pay for debts? Or will it be trips to and from the courts of law eventually climaxing in arrest?
Dreamland.com
*Yawning*
Only if wishes were horse.
Hanthony Siabwalya and scoundrel/weirdo H² would jump right on them.
I feel like voting for the incumbent mwe. Iwe 2021endesha.
Lynch, we dont need all this political/economical jargon to know that these just promises which you cant even verify. Mr Bwalya sounds as if he is the one who will be incharge of all spheres of GRZ.
Mr. Bwalya needs to know that we want a GRZ which will ensure running water in our homes, all season sewerage systems. Medicine availability in our existing health institutoins. Repair existing roads. Adequete teachers in existing schools, etc. We are simple people seeking simple solutions to our day to day simple problems. Ironically, non of our parties talk about these simple problems, yet very cardinal to our well being. The story Mr. Bwalya is putting across has been told before by all parties who have governed Zambia.
HaAthony HaBwalya with a con man TRIBAL HORGANISATION & PRIVATISATION THIEF Hallucinating together HAGAIN. UNELECTABLE TAX EVADER.
I am waiting for Sunday Chanda to make a comment.
I already have made a comment. Too CHILDISH to be a PRESIDENT.
1. Scrap PAYE
Including other taxes that tax consumer goods.
2. Tax or repossess the mines.
Go after the corruption of Transfer Pricing – which is tax fraud – by the biggest mining houses, who have not declared any profit because of this practice. Transfer pricing is when a mining company ‘sell’ it’s copper to a company it owns in a no-tax haven (Madagascar), at a loss, thus hiding taxable profits and foregoing dividend payments. Transfer Pricing is defrauding both the Zambian taxpayer and minority shareholders in the major corporation.
They’re cheating the taxpayer for billions of USD.
Day dreaming at it’s best. Things are easier said than done. Only shallow minded blind followers would buy into Antony’s poetry…!!
Only shallow-minded would think this is impossible to achieve. Believers in mediocre performance and goal!
Forgetting that you achieve zero without goals.
Even when the guy has put in front of your noises, you cant see an opportunity for improvement. You believe the current status is the best that can be achieved.
This typical PF way of thinking, is that right?
It poetry no doubt without rhymes. Boring stuff.
Anthony Bwalya has really positioned himself as a good useful idyot. The moment he’ll know what UPND really is and see the true colors of the Freemason he will deflate like a fart
At least the UPND have a plan unlike the chi pante-pante style of the PF government.
However,the sad thing is that the literacy levels of the majority of Zambian voters now is so low and they would not appreciate such logical thinking.This is what the PF fully capitalizes on.
I’m afraid the UPND will have to lower themselves to the PF style of politics.
With all due respect, i think putting up such a plan without tackling how the debt currently owed by the country will be settled without it inhibiting or having an adverse impact on your plan. secondly why are you leaving out the Inflation effect on the extra income people will have.
what are you say rowdy
With all due respect, i think putting up such a plan without tackling how the debt currently owed by the country will be settled without it inhibiting or having an adverse impact on your plan is wishful thinking. secondly why are you leaving out the Inflation effect on the extra income people will have.
Hichilema’s supporters think that it will be as easy as hitting the buttons Ctrl+alt+del& Enter then all problems will disappear for Zambia to start afresh
They are so screwed by reality. KK, FTJ, MWAMBA LUCHEMBE, LPM, RBB, MCS AND ECL would be laughing at these empty tins zero experience parley walkouts market torchers, boyz who cry LION! LION! LION!
See how s.i.l.l.y the crap of an article looks.
They have been whining since 2001.
Promoting consumption may fuel inflation which you can only stem by taxation whose demand may often be higher since most consumptives are imported. And how do you ensure the $1.5 billion remain in local circulation for that five year period given the pressures of forex viz flight
For once I’d rather the next govt takes the risk of recognising and investing in our own scientists and technologists by allowing them leeway to research and develop at least one or two capital goods. It could be some farm implement,simple tractor or mini hydro power plant. We need alocally bred lead or break into industrialization
Increasing the Tax free threshold to 4000 from 3300,is this a significant difference? what if PF increases this threshold to 5000 by 2021,and reducing the highest Paye tax band by 10%,meaning the 37.5% would drop to 27.5%,my question,does this low minded writer know we have a number of tax bands other than the 37.5%,my simple analysis is that UPND might just copy and paste the current PAYE,he has not presented any thing different.
It has been done before, it can be done again and better with good economic managers which the UPND proudly say they have. I am not UPND or any party member but I would vote for UPND any day over PF, the famous chipante pante govt.
On the ghost workers, these are PF cadres who have been employed by the PF as a buffer against defection even in very hard times.
Comment: Pure pipe-dreams from Antony.
Mr Bwalya such important information kindly let be on paid advitising article so that our able youth can access this important information
Correctly observed Its all misplaced Its correct that on GDP the biggest number is Consumer spending now to moderate taxes in that manner without raiding growth rates by 50% of Current GDP will simply result in reduction of GDP according to laffer Curve analysis of those tax policy decision being advanced It something that the current PF fiscal plans have simulated and seen to see what should the appropriate tax policy be The decisions in the NDPs to spend and shift spending to infrastructure projects should be supported and was meant and is meant to create a quicker turnaround of the economy Those earmarks (there is sequestration in parliament also to deal with these) are waste…
(Rather raising Growth rates by 50%)
must be addressed and dealt with The writer should also see the potential GDP and real and at what pace it should grow to support his write up(fiscal plan USD 1.5 B )
There is more analysis he needs to do on GROWTH REVENUES(analysis of various taxes and policy ) EXPENDITURES DEBT AND DEFICITS BUT SAFELY TO SAY THIS IS NOT AS BETTER FISCAL PLAN THAN CURRENT BEING IMPLEMENTED BY PF and if it has to be better it has to start with current PF Budgets and Plans and how the turn around will be within economic outlooks As it is the whole article is mere politicking
Theorists are like spectors coaching from stands. These have not even played even icimpombwa (ball made from rugs).
Theorising is easier than practical.
A theorist is more of a paper tiger than a live once.
when you read through critically his proposals it could low the economy at current levels of infrastructure spending and social systematically over those projected periods He needs to see at what level of Growth will cutting expenditure or effective taxation will restructure the economy faster than current ministers plans(within 5 yrs) Any drastic cut of expenditures say by (30%) without growing the economy will regress the economy
The Presidential Jet (gulf stream) is within cost It has all the facilities and security features that a presidential person will require It has helped to reduce the cost of travel and in the long-run but thus said not every travel is presidential…
Jet some can come with Airline We have seen Investments in assets and infrastructure in the airline and the good thing that comes with a Gulf stream Its not as bad as being said here On Projects and that comes with it its broader than that and it must be seen in the broader reasons why the infrastructure developments where embarked appoint and without them chibombo and other towns could have been rural as before with little livelihood activities The costs and management is another but the intention of infrastructure projects must be appreciated Say for airports and roads Airports if well positioned and attracted could be like Qatar or Dubai in cargo and freight attracting…
attracting passengers and freight of around 20000 to 1000000 over the years and that is sufficient income and capital for investments in other sectors in the country and around the cities So the long-term is brighter than those figures there So people have to realize the Investments and make use of them to make a dividend and return because the PV of money invested now if returns are made will be higher than if not invested at all Other things is simply management
I PERSONALLY WOULD GIVE U.P.N.D A CHANCE.
P.F have lamentably failed, all P.F have given Zambia is Corruption, Violent Officials i.e Kaiz@r, Ch1mpy0ngo, Kanganja, High Debt /Depleted Treasury & foreign reserves, which were healthy when they took over from President K@nitundila.
P.F have given us depleated Mukula, Wild Dogs, Black Lechwe & other wildlife, Eswat1ni, & 51;Mansions, Sturdy Mwale, Chimese, Kitotela, Valden, Expensive Jet, Ancient Fire Tenders, + 48 Wheelbarrows, fake Saudi cheap Petrol, loadshedding. PF ALSO GAVE US FAKE PRAYERS, & A NOT FIT FOR PURPOSE GODFRIDAH.
Dare I say more??
I PERSONALLY WOULD GIVE U.9.N.D A CHANCE.
P.F have lamentably failed, all P.F have given Zambia is Corruption, Violent Officials i.e Ka1z@r, Ch1mpy0ngo, Kang@nja, High Debt /Depleted Treasury & foreign reserves, which were healthy when they took over from President K@nitundila.
P.F have given us depleated Mukul@, Wild D0gs, Bl@ck L3chwe & other wildlife, Esw@t1ni, & 51 M@nsions, Sturdy Mw@le, Ch1mese, Kitotel@, V@lden, Expensive Jet, @ncient Fire Tenders, + 48 Wheelb@rrows, fake S@udi cheap Petr0l, l0@dshedding. PF ALSO GAVE US F@KE PR@YERS, & A NOT FIT FOR PURPOSE G0DFRID@H.
Dare I say more??
A gift whether old or new is acceptable CIF to Zambia Its more significant not just in those model fire engines its typical of american style and adds fun to firemen
Global foreign currency country to country debt has been rising ,but Zambia has kept a difficult lid to achieve sustainability ,keep costs of financing and avoiding a debt trap which could have come earlier amidst spending needs and changes in low revenues mobilization, that should be commended It’s not like in India whose fiscal deficit 93% with little tax options Egypt external debt stands at 108.7 Billion (36% of GDP) and they are forecast to perform the economy and make a return to repay and…
unwind the positions South Africa’s is at 60.8% of GDP.There are not panicking without a plan but also fully understanding the hintened exposure and risks that comes with that exposure and are working to rebalance and perform the economy It’s not like it’s a foregone conclusion Zambia is much more flexibly position to gain in real options from the current debt levels and resulting invested infrastructure developments compared to similar countries of different debt to GDP levels that are yet to pass the 70 % levels that raises concerns and heightened risks
On crude oil ,seen from the benchmark crude oil contracts ,the prices of imports are within the spreads per barrel