Finance Minister Alexander Chikwanda says DBZ has an important role to play in encouraging more investment among Zambians.
Mr. Ckikwanda said this is why government would strive and ensure that it increases the budgetary allocation to the bank if many people are to benefit.
Speaking during the ACCA 2012 Budget Analysis programme on ZNBC TV last night, Mr. Chikwanda stated that the Patriotic Front government is interested in seeing that a lot of sectors that can foster economic development are revamped.
He further acknowledged that the budgetary allocation for DBZ in the 2012 national budget is inadequate hence government will engage various stakeholders to raise enough revenue for the bank.
And Mr. Chikwanda has maintained that government will not re-introduce the windfall tax for mining companies.
The Finance Minister said the government’s decision not to bring back the tax is in line with protecting investment in the mining sector that employ more than 40,000 Zambian miners.
Mr. Chikwanda explained that the increase in mineral royalties’ tax is sufficient enough for government to raise resources to run and boost the country’s economy.
Mr. Chikwanda added that government‘s decision to hike the mineral royalties’ was in order to create a win-win situation to ensure that investment is not lost in the mining sector but rather encouraged.
He said to this effect, both mining firms and government will benefit from improved metal prices on the international market.
Mr. Chikwanda has since assured Zambians working for the mines that government would ensure that they are part of the economic growth in the sector through improved conditions of service.
He further explained that if workers in the mining sector are paid well, government would be able to increase its revenue base through various taxes such as Value Added Tax and the Pay As You Earn (PAYE).
Finance Minister Alexander Chikwanda last Friday presented the 2012 national budget were he proposed an increase in the mineral royalty tax and other corporate taxes instead of re-introducing the windfall tax.
[ZANIS]