GOVERNMENT will undertake a comprehensive reform on tax policy to ease the tax burden on personal income taxpayers.

Currently, the first K800, 000 is exempt from Pay-As-You-Earn (PAYE).

Minister of Finance and National Planning Situmbeko Musokotwane assured the International Monetary Fund (IMF) that the 2011 fiscal policy will focus on creating space to facilitate spending on infrastructure and the social sector.

Dr Musokotwane said this in a Letter of Intent to the IMF dated June 3, 2011.

He said Government will continue to improve the performance of revenues by drawing on technical assistance from the co-operating partners and also conclude the auditing of the mining sector.

“In the medium term, the focus will remain on undertaking a comprehensive reform of the tax policy and administration to improve the performance of customs and excise taxes, to ease the revenue burden on personal income taxpayers,” he said.

Dr Musokotwane said domestic revenues are projected at 19.3 percent of gross domestic product (GDP) on account of strong economic growth and improved metal prices.

He said macroeconomic objectives in 2011 are to sustain the high levels of growth in the economy, lower inflation and strengthen the economy against external shocks by building up gross international reserves.

He said the increase in revenue will be driven by growth in income taxes, from 9.4 percent in 2010 to 10.1 percent of GDP on account of collections of mining taxes, including tax arrears.

Real GDP growth in 2011 has been revised upwards to 6.8 percent from an earlier projection of 6.4 percent driven by the mining, construction and transport, storage and communication sectors.

He said inflation is projected to close the year at seven percent while gross international reserves are projected to rise to at least US$2.4 billion, or 3.4 months of prospective imports.

He pointed out that recent development in both the global and domestic economy present downside risks.

“If oil prices remain high or continue rising, this has the potential to drive up inflationary pressures in oil importing countries and slow global growth.

On the domestic front, the recovery in private sector credit, from the sharp contraction during the global financial crisis, needs to remain consistent with underlying demand in the economy to avoid fuelling inflationary pressures,” he said.

Dr Musokotwane said expenditures are projected at 24.1 percent of GDP with 3.4 percent financed using foreign grants and loans.

He said wages will decline slightly to 7.9 percent of GDP from 8.1 percent while domestically financed expenditures or the social sectors and infrastructure development in the transport sector will increase to 50 percent of the budget compared to 35.7 percent in 2010.

He said the budget outlay for maize purchases will be K653 billion, a reduction of 46 percent in 2011 (about 0.6 percent of GDP) compared to 2010.

The overall fiscal deficit (including grants) has been projected to decrease to 2.9 percent of GDP from 3.1 percent recorded in 2010.

Dr Musokotwane said domestic financing will be limited at 1.3 percent of GDP, which is 1.5 percentage points below the outturn in 2010.

And Government intends to issue its sovereign bond in the second half of this year.

Dr Musokotwane said the bond issue will be used on infrastructure development, in particular roads and power projects.

“In this context, the government will carefully consider maturity and exchange rate risks, and the debt sustainability and cashflow implications,” he said.

Zambia was in March this year assigned a sovereign credit rating of B+ by Fitch and Standard and Poor’s Ratings.

Dr Musokotwane said Government intends to take appropriate measures for a successful bond issue, which include the procurement of legal and financial advisors, the use of collective action clauses and will consider phased issuance.

[Zambia Daily Mail]

President Rupiah Banda is tomorrow expected to be in Kabwe to officiate at this year’s pass out parade for intake 32 recruits for the Zambia army at Lukanga army battle training.

Special assistance for Press and Public Relations Dickson Jere said in a press statement today that this is the second Military pass out parade within the week that president Banda is officiating for security officers.

Last week President Banda officiated at a pass out parade for Zambia Air force in Livingstone.

President Banda is also expected to address a Public rally after the pass out parade and it will be his first rally after the adoption of the Member of Parliament and local government candidates for this year’s elections.

The President is expected to be back in Lusaka after the end of the Public rally.

A political analyst Dante Saunders has joined Zambians in condemning the suspected cadres for the Movement for Multi-party Democracy (MMD) for beating the MUVI Televiosion of journalists in Lusaka this week.

According to news monitored on QFM radio today mr Saunders says brutalising journalists should not be condoned in Zambia as the country goes for this year’s tripartite elections.

He condemned the intolerance among political parties adding that the action of the cadres was an act of criminality.

The political analyst appealed to police to ensure that agitators of violence among the journalists were arrested.

He said if the scenario was left unchecked the conduct of political cadres could reach alarming levels and described the action as unfortunate.

Saunders urged political parties to exercise restraint ahead of this year’s elections.

He said Zambia has reached a stage where such acts should not be condemned adding that journalists play an important role in the eyes of society and should be allowed to work without intimidation.

Namwala Member of Parliament Robbie Chizyuka has charged that the UPND has no chance of getting the presidency in this year’s election.

Mr. Chizyuka says UPND president Hakainde Hichilema should not mislead members of his party that he is making inroads in his campaigns around the country.

He says the UPND cannot depend on southern province alone to win the presidency in the forthcoming elections.

He added that it is high time that the UPND realized that it has no chance of winning this year elections.

In an interview with QFM recently,the Namwala Member of Parliament who has been adopted to re-contest his seat on the MMD ticket has further charged that Mr. Hichilema had a chance of being closer to the presidency at the time of the UPND/PF pact.

And The opposition United Liberal Party ( ULP ) in Livingstone has pledged to work with the ruling Movement for Multiparty Democracy (MMD) to its victory in the forth-coming 2011 tripartite elections.

The officials who included ULP Constituency Chairperson Mr.Clement Munalula, District Chairlady, Ms Jane Ingwe, and Acting District
Chairperson Mr. Delvec Mwendalubi all said they would support the ruling party in the elections.

ZANIS reports Mr. Munalula saying during a press briefing at the MMD offices in the tourist capital, today, that his party officials have heed the opposition party leader Sakwiba Sikota for his party to work with the ruling party and ensure it retained power.

Mr. Munalula said the party has decided to campaign for the ruling party because of the numerous developmental projects been implemented countrywide.

“As ULP we have decided that there is no other political party that has brought so much development than the MMD and we hereby pledge to rally behind the MMD to ensure that it wins the forth-coming general elections,” said Mr. Munalula.

But he maintained that people should not misunderstand the relationship as it was just an alliance and nothing else.

“We want to make it clear that we have not joined the MMD per se but we have just decided to share one platform and campaign for the ruling party to ensure that it wins the elections and continue its impressive social and economic performance,” Mr. Munalula said.

And MMD District Chairperson Mr.John Mukosho said the ruling party and ULP was working out modalities on how best to work together during the campaigns.

Mr. Mukosho also advised MMD officails to go flat out to campaign for Lukulo Katombola who has sicne been adopted by the National Executive Committee to contest Livingstone Constituency.

He further called for a spirit of hard work and commitment among all MMD members to if the party was to be triumphant during the elections.

QFM/ZANIS

The Patriotic Front says it does not have a policy of banning the public media from covering its activities.
PF Secretary General, Wynter Kabimba, has told the Media Institute of Southern Africa (MISA) Zambia that the PF Central Committee has never sat to pass a resolution banning the public media from covering it.

Mr. Kabimba told MISA Zambia Chairperson Daniel Sikazwe and National Director Sipo Kapumba, who requested for a meeting with the PF Secretary General to clarify the recent banning of the public media from covering the PF General Congress in Kabwe.

He says his party was frustrated that the public media tended to cover his party in a negative manner which tended to harm its public image.

Mr. kabimba has complained that despite repeated efforts to reach out to the public media to create dialogue and mutual understanding, his efforts had yielded nothing.

He says his party expects the public media to exhibit the highest professional standards and adhere to professional ethics because they are owned by the Zambian public.

Mr. kabimba adds that the public media should show fairness in their coverage of different stakeholders, including opposition political parties.

He has assured MISA Zambia that the PF does not hate the public media, referring to the PF manifesto, which elaborates the PF stance on the media and its support for a free press.

The PF secretary general further says his party is ready to open dialogue with the heads of the public media, if government permits them, so that both parties can appreciate each other and their role in strengthening Zambia’s democracy.

QFM

President Banda has castigated opposition parties and some individuals criticising the World Bank’s reclassification of Zambia as a lower middle-income country.

Mr Banda said he is disappointed with people who have continued to criticise the World Bank decision which shows that Zambia’s economy is growing.

“We have received the news from the World Bank and the country’s B+ rating from international rating organisations Standard and Poors and Fitch with honour and joy but it is surprising that my colleagues in the opposition have continued to criticise such recognitions,” President Banda said.

“They are saying there is still poverty in the country but there is no country in the world which is free of poverty. It is through these ratings that our country will manage to eradicate poverty,” he said.

President Banda said this when he officiated at the ground-breaking ceremony of the Kafue Gorge Lower Hydro-electric project in Kafue yesterday.

He said the continued positive ratings mean that Zambia’s economy is growing at a fast rate and benefits will trickle down to citizens and improve their lives.

Mr Banda said Zambia can now attract more investors to the country’s critical sectors and investors will help Zambia to develop economically, socially and politically.

“These ratings do not mean that our people will wake up tomorrow and start driving their own vehicles, live a posh life or that the country will suddenly eradicate poverty. But in the long run, people will live more comfortable lives. So, I wonder what my colleagues criticise. One day we will get there,” President Banda assured.

He said the ratings are not political because they were conducted by credible international institutions, based on the country’s economic achievements.

[pullquote]”These ratings do not mean that our people will wake up tomorrow and start driving their own vehicles, live a posh life or that the country will suddenly eradicate poverty. But in the long run, people will live more comfortable lives. So, I wonder what my colleagues criticise. One day we will get there,” President Banda assured.[/pullquote]

Mr Banda said he is happy that Zambia has been reclassified as a lower middle-income country and assigned positive ratings under his administration.

Meanwhile, Mr Banda has announced that over 200 housing units in Camp Three of Namalundu Gorge residential area in Kafue will be sold to sitting tenants.

And President Banda is disappointed with people who are criticising the World Bank’s ranking of Zambia as a lower middle-income country.

Mr Banda made the announcement in Kafue yesterday when he officiated at the ground-breaking ceremony of Kafue Gorge Lower Hydro-electric Project.

“Let me take this opportunity to announce that over 200 houses in Camp Three of Namalundu will be given to sitting tenants to benefit our people,” he said.

The institutional houses are occupied by Zambia Police Service officers, health workers and some employees of Zesco. Mr Banda said Zesco under the Kafue Gorge Lower Hydro-electric Project will build houses for its employees working under the project.

He said the project will also construct a classroom block at Chibola Basic School in Namalundu.

“Zesco will build new houses for its workers who will be employed under this new project. In the same vein, this project will construct a classroom block at Chibola Basic School which you had requested me to build for you,” Mr Banda told the crowd which had gathered to witness the ground-breaking ceremony.

Before making the announcement at the project site, Mr Banda toured the Namalundu houses and some schools.

He also held private talks with Zesco management and some members of the board of directors.

Recently, the President instructed Maamba Collieries to offer over 800 houses to former sitting tenants as part of the home empowerment scheme

Mbala Member of Parliament, Guston Sichilima has pledged to remain loyal to the MMD despite not being adopted to stand in Mbala.

Mr Sichilima who applied and was not adopted for the Mbala Parliamentary seat says he is not going to ditch the MMD which he says has given him an opportunity to serve in various party and government positions.

He told ZNBC News in an interview that he will support, President Banda and Mwalimu Simfukwe who has been adopted to contest the Mbala parliamentary seat on the MMD ticket.

Mr Sichilima has urged other members of the party that have not been adopted to remain united and ensure the opposition is given the greatest defeat ever.

And Former Chienge District Commissioner Samuel Chewe has pledged to support all MMD adopted parliamentary candidates in Luapula province.

In his congratulatory message to the adopted candidates, today, Mr Chewe says he will support all the nominated MMD candidates to ensure that the ruling party emerges victorious in the province in this year’s elections.

Mr Chewe, who was one of the applicants for Kawambwa Central constituency, has since appealed to all those that have not been adopted to support the adopted candidates.

He has called on all MMD members in the province to come together and launch an issue based campaign focusing on the many developmental projects that the MMD has scored under the leadership of President Rupiah Banda.

In a statement made available to ZANIS in Mansa today Mr Chewe also urged the adopted candidates to work hard.

He further requested all MMD members to refrain from acts of violence during the period saying that it is the only sign of true democracy.

Among the nominated candidates include Elizabeth Mulobeka ( Kawambwa ), Sunday Maluba ( Mwansabombwe ), Dr Bulangeti Chisha (Pambashe) and Besa Chimbaka ( Bahati ).

Copperbelt Permanent Secretary Mwansa Mbulakulima will recontest his Chembe Contituency, with Dr Chitalu Chilufya ( Mansa Central ) , a Mr. J. Kapungwe ( Chipili ) and Mr John Chinyanta will also recontest his Mambilima seat.

Others adopted include Dr Jacob Chongo ( Mwense ), while the Chiengi seat will be contested by a Mr. M Mampi. Former Defence Minister Beny Y. Mwila will contest the Nchelenge seat, while the Bangweulu seat will be contested by Mr. Sylvester Chifwembe.

The Chinfunabululi and Luapula seats will be contested by Chiliyea Kapekele and Daniel Chisala, respectively

ZANIS

MMD National Secretary Richard Kachingwe has also called on Journalists to attend any MMD function without fear of intimidation adding that the party will
guarantee them total protection.

Major Kachingwe said that MMD regretted the beating up of a Muvi TV crew by alleged MMD cadres in Lusaka West. He said the beating was uncalled for and has distanced his party from the same.

He said the party is still investigating whether the people involved were MMD cadres but has however condemned the beatings. Major. Kachingwe told ZANIS in an interview in Lusaka that the party believes in media freedom and does not allow its cadres to harass any journalists.

He said the MMD is known to have introduced media freedom and takes the media as its partners. The MMD Chief Executive labeled the attacks on the journalists as criminal and called on the police to bring the culprits to book.

He advised people to distinguish between party functions and criminal functions. Major Kachingwe also urged the public to be aware of some opposition cadres who masquerade as members of the party when they are involved in such fracas with the view of denting the image of the ruling party.

He has meanwhile, reiterated that the party will always uphold peace ahead of this year’ general elections.

And the Police Service has since arrested 46 people in connection with the beating of Muvi Television journalists in Nakachenje area in Lusaka West on Monday.

Police spokesperson Ndandula Siamana says 26 out of the 46 are women.

Ms. Siamana said that the two men among the suspects have been identified as political cadres and have been charged with assault.

She has told ZNBC in Lusaka that the rest of the suspects have been charged with criminal trespass and obtaining money by false pretence.

Ms. Siamana has warned that the Zambia Police will deal sternly with anyone that will abrogate the law.

On Monday, a Muvi Television News Crew was beaten by unknown people as they went to cover a land wrangle in Nakachenje area in Lusaka West.

ZANIS