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Alba Iulia
Tuesday, November 23, 2021

Increased Stability of the Economy has Resulted the Remarkable Performance of the 2021 National Budget

Economy Increased Stability of the Economy has Resulted the Remarkable Performance of...

Secretary to the Treasury Fredson Yamba says the government is pleased with the performance of various revenue initiatives in the first half of the implementation of the 2021 national budget.

Mr Yamba points out that the remarkable performance is a result of the increased stability of the economy.

“The Government is pleased with the performance of various revenue generation initiatives during the first half of implementation of the 2021 national budget.

“The remarkable trend of above-target performances of the majority of revenue streams manifests the increasing stability of the economy. The coast is clear and the future is bright, ” he said.

According to a statement issued to the media last evening, Mr Yamba indicated that the Treasury will continue to keep its doors open to elevated engagement with economic players as government implements the relevant economic stabilization reforms to enable the country to remain on the current positive growth trajectory.

“As Treasury, we will continue to keep our doors open to elevated engagement with economic players as we implement the relevant economic stabilization reforms to enable the country to remain on the current positive growth trajectory, without leaving anyone behind,” He said.

And the Secretary to the Treasury says the Treasury will continue to ensure that the remaining part of the 2021 national budget is effectively implemented especially in the area of revenue generation and social sector expenditure.

He emphasized that the economic recovery program will continue to receive our elevated attention in the quest to ensure that the country’s development outcomes bear sustained fruit for the people and businesses of Zambia.

Mr. Yamba states that the future of Zambia’s economic recovery is bright if the country continues on the same path of recovery, stabilization and growth.

“As we prepare for the 2022 national budget, we will also continue to ensure that the remaining part of the 2021 national budget is effectively implemented especially in the area of revenue generation and social sector expenditure.

“The economic recovery program will continue to receive our elevated attention in the quest to ensure that the country’s development outcomes bear sustained fruit for the people and businesses of Zambia.

“I take this opportunity to thank my fellow citizens and all our development partners; both bilateral and multi-lateral, for walking the economic stabilization journey with us. The future is bright for all Zambians if we continue on this path of recovery, stabilization, and growth, ” Mr. Yamba said.

ZRA SUPPORTS PRESIDENT LUNGU’S INITIATIVE TO EMPOWER CLEARING AGENTS OWNED BY ZAMBIANS
ZRA SUPPORTS PRESIDENT LUNGU’S INITIATIVE TO EMPOWER CLEARING AGENTS OWNED BY ZAMBIANS

Total collections of revenues and grants for the period January to July of 2021 amounted to 64.4 billion kwacha and were 56 percent above the target of 41.2 billion kwacha.

While Tax Revenue accounted for 45.2 billion kwacha, Non-Tax 18.4 billion kwacha and 753 million kwacha was from grants.

The statement further showed that Income tax collected for the period under review amounted to 28 billion kwacha against the target of 17.5 billion kwacha and were above target by 60 percent.

Mr Yamba disclosed that the performances were driven by payment of tax arrears, upward amendments of provisional returns and payments by both mining and non-mining firms, and increased payment compliance.

On the Company tax, K 14.9 billion was collected against a forecasted projection of K 7 billion , representing a favorable collection of over 100 percent.

The performance was attributed to payment of tax arrears and upward amendments of provisional returns and payments by both mining and non-mining firms.

On Pay as you Earn ( PAYE) , K8.5 billion was collected against a forecasted projection of 7.4 billion kwacha representing an over-collection of 15 percent.

Mr Yamba attributed the performance to the government’s payment of third-party arrears during the period under review and receipts from some major mining companies such as Kalumbila Minerals, Lumbambe Copper Mine, Grizzly Mining Limited and Zambia Portland Cement.

Other Income Tax (withholding tax): Collection under this tax type amounted to 4.5 billion kwacha against a forecasted projection of 3 billion kwacha, this performance was attributed to advance payments made during the first half year by the Bank of Zambia, Copperbelt Energy Corporation, Lubambe Copper Mine, and arrears by some taxpayers such as Maamba Collieries.

Under Value Added Tax (VAT), Mr Yamba disclosed that 11.7 billion kwacha was collected against a target of K9.6 billion and were above target by 22 percent.

He indicated that the performance was driven by positive collections in import VAT due to increased importation volumes and taxable value of imports mainly in the mining sector.

And commenting on the expenditure performance, Mr Yamba revealed that government released 79.1 billion kwacha to finance public service delivery.

He further hinted that the total expenditure of 73.1 billion kwacha was financed from domestic resources while 5.9 billion kwacha was foreign financed.

Mr Yamba stated in the same statement that expenditures were 18.9 percent above projection for the period due to higher releases towards developmental programmes and dismantling of arrears.

On Personal emoluments, Mr Yamba disclosed that 17.8 billion kwacha was released by government for salaries for civil servants, third-party payments, gratuity for Members of Parliament and allowances of Zambia’s diplomats in missions abroad.

In a related development, Mr Yamba highlighted that government released 10.2 billion kwacha for general operations.

“ This outturn was above projection due to higher releases towards contingencies such as the 2021 general elections (1.1 billion kwacha), disaster preparedness and response (506.6 million kwacha), purchase of drugs & medical supplies (1.9 billion kwacha), and the national census (86 million kwacha), ” he said.

Meanwhile on Debt service, the press statement indicated that domestic debt service payments totaled 13 kwacha billion which included principal repayments of K 238.8 million on commercial bank facilities.

While on the other hand, external debt service amounted to 3.4 billion kwacha with principal repayments amounting to 1.7 billion kwacha.

“At K16.4 billion, debt service payments during the period under review accounted for 20.7 percent of total expenditure. This was 41.7 percent lower than projection due to the ongoing external Debt Service Suspension Initiative (DSSI).

“Total collection in Customs Duty amounted to K2.9 billion against a target of K2.4 billion, representing an over collection of 19 percent.

“ This performance is attributed to the increase in taxable value of imports and to increased import volumes, mainly in the mining sector,” he disclosed.

Mr Yamba further revealed that K 2.4 billion was collected under excise duty against the target of K 2.6 billion.

“The revenue target under this income stream was set at K2.6 billion. Actual collections amounted to K2.4 billion, representing an under performance of 8 percent, “ Secretary to the Treasury said.

“This is attributed to reduced contribution by excise manufacturers due to reduced production and consumption of excisable products.

“The minor underperformance is also attributed to the suspension of excise duty and fuel levy on fuel (petrol and diesel) by Statutory Instrument No. 5 of 2021, ” he explained.

For export duties, a total of 64.8 million kwacha was collected against a target of 123.9 million kwacha.

“ This was below target by 48 percent. This performance is mainly attributable to the waiver of export duty on precious metals and other tax concessions aimed at supporting export-oriented manufacturing, “ he said.

8 COMMENTS

  1. All the money was stolen so what was the purpose of collecting it. All the money ended up driving the corruption index higher.

  2. Which economy are they referring to? The 1964 one? Guys be serious…things are only looking good to the people who belong to the PF.

  3. Something is very fishy be PF ,earning some 56% more in a year is never heard of . Maybe 10% or 20% increase is more realistic .

  4. This in part is what is driving the political players to fight for this cake that is brightening up. Lungu put his head on the block to brighten the future now it is almost time for economic take off. And naturally the vultures are lining up to claim the victory. Politicians are a different human breed.

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