The opposition FDD has questioned the motive behind proposing a tax which would end up being scraped off all together.

Commenting on the removal of the 7.5 proposed tax on the importation of copper concentrates, Antonio Mwanza the Party Spokesperson questioned why the tax was proposed in the first place and wondered what has changed for government to completely U-turn.

He said the only thing consistent about the U-turn is the continued inconsistencies and lack of direction which the PF government has exhibited as regards to the taxation regime on the mining sector.

He further wondered why the negotiations were not done during the pre-budget stage.

“The decision to remove the 7.5% budget proposal on importation of copper concentrates is testimony of how inconsistent and directionless the PF Government is with regards to the taxation regime on the mining sector.

“This U-turn raises more questions than answers:

Why was the 7.5% tax even proposed in the first place? What was the rationale? What has changed for Government to U-turn? Why didn’t the Ministry of Finance negotiate with the mines during the pre-budget stage on the same matter? How will Government recover the deficit of K500 million which we could have recouped from the tax? What dividends will the mines pay to the Government for it to raise the targeted K500 million?” He lamented.

He explained that the country is being ripped off by mining firms due to the lack of capacity by government agencies to ascertain the correct volumes and quality of copper concentrates that mining firms are either importing or exporting.

He said it is due to such inconsistencies that the mines contribute a paltry 18% to the country’s GDP despite the sector being the major export earner.

“Government of Zambia and its agencies such as ZRA have no capacity whatsoever to ascertain the correct volumes, amounts and quality of copper concentrates that mining companies are either importing or exporting as a result Zambia has continued to be ripped off by the mines through under-declaring of profits, tax avoidance and so forth.

“Despite the mining sector being the major export earner for Zambia it’s contribution to the national GDP has been a paltry 18%. Most of the profits mining companies are making are being externalised and together make matters worse the mines combined are paying far less in taxes to the national Treasury in comparison to what the poor workers collectively are paying in PAYE. Government is milking and bleeding it’s own poor citizens at the expense of conglomerates,” he said.

He added “It is criminal to allow the foreign entities to continue ripping off Zambians by giving them Santa Clause type of tax breaks and tax holidays. Mines must pay a fair share of taxes and it is therefore important that the ownership and taxation regime of the mines must seriously be reviewed and altered.”

Minister of Communications and Transport Brian Mushimba says Government is working to improve information technology for enhanced service delivery.

Mr Mushimba says the new technology of monitoring vehicles using smart phones is an exercise that can save costs by avoiding abuse while enhancing road safety.

The Minister says he is making efforts to pilot the exercise in his Ministry to monitor how Government vehicles are being used.

Mr Mushimba was speaking in Lusaka during the launch of ZAMTEL Connected Car.

He said it is gratifying that ZAMTEL is thinking out of the box to make Zambia smart.

Mr. Mushimba said Government is installing mobile phone network towers across the Country to achieve 92 percent coverage.

He said companies like ZAMPOST have totally diversified to a profitable business by embracing innovation in a competitive environment.

And ZAMTEL Chief Executive Officer Mupanga Mwanakatwe said theft of motor vehicles is worrying.

Mr. Mwanakatwe said those who run fleets can use the technology to monitor fuel consumption of their vehicles to avoid abuse.

He said fraudulent accident reports can also be monitored through the latest technology.

And CUMII International Chief Executive Officer Norman Moyo notes that the world has become dynamic because of technology.

Mr Moyo said connected car by ZAMTEL would help in effective fleet management and fuel consumption.

Parliament has unanimously approved the K64.5-billion 2017 national budget without any amendments.

The national budget was passed, Wednesday night.

First Deputy Speaker of the National Assembly Catherine Namugala presided over debates that led to the approval after which she handed over the report to Speaker of the National Assembly Dr. Patrick Matibini.

Earlier Minister of Finance Felix Mutati presented the Appropriation Bill number 47 of 2016 which was a culmination of tasks started in the committee of supply and estimates for the 2017 National Budget.

Mr. Mutati stated that the important task that now lies ahead after the budget approval is implementation in line with the theme of ““Restoring Fiscal Fitness for Sustained Inclusive Growth and Development.”

He told the house that the success of the budget depends on revenue in-flow and committed his ministry to timely collection of revenue and disbursements to provinces and spending agencies.

Parliament has since adjourned sine die. The house adjourned at 23:40hrs after Vice President Inonge Wina moved the motion.

Meanwhile, REFINANCING the US$2.8 billion Eurobonds in 2017 will be determined by the satisfaction of the market fundamentals such as being able to obtain longer repayment terms and achieving lower rates, says minister of Finance Mutati.

Refinancing a bond is the process through which a company reorganises its debt obligations by replacing or restructuring existing debts.

In an interview, Mr Mutati said Government would assess the market which would determine whether or not it could go ahead and refinance the Eurobonds in 2017.

“We shall have to look and make an assessment, can we be able to refinance a Eurobond in 2017 at a price lower than the one that we got it at, if the answer is yes, then we shall do it,” he said.

Mr Mutati said one of Government’s key deliverables for 2017 was to refinance the Eurobond, but he was quick to mention that timing would depend on market conditions.

“We need to taste the market, whilst the fundamentals externally may be weak, it is better to test the market and see whether at this moment in time in the first or second quarter it is possible to get a pricing that is superior,

“So yes we shall hold on, we will not take the decision unless we can achieve a superior price and for us timing is critically important,” he said.

Mr Mutati emphasised that Government would however taste the market if possible

He said Government was clear on what it wanted to do in 2017 which included formulating a debt sustainability analysis.

He explained that to see its ability of being able to meet the repayment of the Eurobonds in 2017 and going beyond, which he said would give Government the headroom of how much more it could borrow.

“There is no need to refinance a bond if you do not achieve a lower cost and longer repayment terms, there is no logic,

“So those two variables must be able to be satisfactory for us to take that particular decision, what the stakeholders are saying is not strange, it is part of the totalities of the ingredients that we are undertaking and evaluating,” he said.

Mr Mutati said the overall objective was that Government wanted to reduce the content of debt repayment from almost 20 percent of domestic revenue to a lower percentage to raise some resources for development.

He was responding to concerns from stakeholders that Government should halt refinancing the bonds because the market conditions were currently tight.

Vice President Inonge Wina says government will hand over the infamous copper slug, Black Mountain in Kitwe to the rightful owner after determination by the courts.

Mrs. Wina however says a portion of the black mountain is being negotiated to be given to youths for empowerment.

Responding to concerns raised during debates on budgets for the 10 provinces, Mrs. Wina said the portion to be handed over to youths is the one owned by government through ZCCM Investment Holdings.

She said no mining activity is supposed to take place in the interim to prevent accidents from happening.

Meanwhile, Mrs. Wina said there is need to translate activities on the copperbelt into benefits for the masses through enhanced programmes and service delivery.

Earlier, Nkana MP Alexander Chiteme called for government’s intervention over the ownership of the Black Mountain.

Mr. Chiteme lamented that Kitwe residents have on several occassions suffered intimidation at the hands of copper dealers known as Jerabos because of the black mountain.