Join our community of SUBSCRIBERS and be part of the conversation.
To subscribe, simply enter your email address on our website or click the subscribe button below. Don't worry, we respect your privacy and won't spam your inbox. Your information is safe with us.
ZRA Commissioner General Christicles MwansaThe Zambia Revenue Authority (ZRA) recorded a K 9, 628 billion increase in tax revenue collections last year.
ZRA Commissioner General, Chriticles Mwansa, says the revenue is higher by K8, 194 billion Kwacha compared to 2007 revenue collection.
Mr. Mwansa says the taxes were mainly collected from the Mines, individuals and business houses.
He also said 2009 will be a challenging year for revenue collection due to the global recession.
ZRA expressed gratitude over the support and encouragement it has been receiving from tax payers last year.
Mr. Mwansa said the taxpayers’ cooperation has helped ZRA restore a sense of national pride and sovereignty.
Mr. Mwansa said growth of tax revenue from K 1, 434.2 billion to K9, 628.0 billion in 2008 would not have been possible without taxpayers’ cooperation. He says the growth in revenue collections could not have been possible without the support from taxpayers.
Mr. Mwansa was speaking at a press briefing to mark the launch of the Taxpayer Appreciation Day (TAD ) in Lusaka today.
He said the TAD day has been chosen to coincide with the ZRA 15th anniversary which will allow its partners to celebrate the achievements and development it has contributed to the nation.
The theme for this year’s Taxpayers Appreciation day is under the theme: Develop Zambia,pay our taxes.
He said Taxpayer Appreciation Day is a new initiative aimed at recognizing and strengthening partnership with taxpayers who have dutifully discharged their Tax obligations.
Central Bank Governor Caleb Fundanga says Children can make positive contributions towards the economic recovery of the country in view of the current global economic crisis.
Speaking when he officiated at the launch of Barclays Junior Achievement (JA) entrepreneurship initiative in Lusaka today, Dr Fundanga said children are capable economic players if properly mentored.
Dr. Fundanga noted that the partnership between JA Zambia and Barclays Bank should be embraced as it is aimed at teaching pupils entrepreneurship and business skills that will enable them compete effectively in the new global economy.
He added that the partnership will go a long way in assisting student in participating school to acquire business knowledge that can make them self sustainable and contribute the national economic growth.
Dr. Fundanga who is also JA Zambia chairperson further urged the business community emulate Barclays Bank and invest in future of children in the country.
The JA – Barclays partnership is entrepreneurship grant of US$18,000 aimed at fostering entrepreneurship skills in among students and five schools in Lusaka have been embarked to benefit.
And Earlier Barclays Bank Southern Region Africa region Director Zafar Masud pledged his Bank’s continued support to developmental sectors of the country’s economy.
Mr. Masud said entrepreneurship initiatives such as JA Programmes are important to the communities as they uplift the living standards of people by creating employment.
The Communications Authority of Zambia (CAZ) has called on countries in the Southern African Development Community (SADC) region to help create open regional markets that will have common application procedures for wireless systems.
CAZ Acting Chief Executive Officer Richard Mwanza, who observed that Africa has only 20 per cent wireless penetration, noted that it was for this reason that Africa needed to advance and deliver services on broadband to cater for everybody in the region.
Mr. Mwanza called on telecommunications regulators in the SADC region to have broadband installations approved within 12 months.
He was speaking yesterday at the on-going Communications Regulators Association of Southern Africa (CRASA) next generation Wireless Technologies Conference.
Mr. Mwanza said there was need to quickly review the regulations in the telecommunications sector so that more people could access the broadband.
He further urged regulators in the region to harmonize the spectrum and ensure that countries across the region use the same frequency bands.
Mr. Mwanza further called for the creation of open regional markets and common application procedures for wireless systems that will lead to the reduction of unnecessary barriers.
Herve Renard has declared the door closed on the old guard hoping to jump onto Zambia’s current wave on the qualifying road to Angola and South Africa in 2010.
Renard said the time had come to hand a new generation of Zambian players their chance to stand up and be counted on the next step of the teams never-ending rebuilding process.
“To say that door is open, is easy to say that. I don’t think we will be strong with the past,” Renard said on Monday evening upon arrival at Lusaka International Airport from Cairo where Zambia drew 1-1 with Egypt in a Group C qualifying match.
“Don’t forget we have young and hungry players knocking at the door like Henry Banda waiting for a chance to be in the team.”
Renard said he would give priority to the players who won bronze at the just ended CHAN after his regular crew of foreign-based faithful’s.
He also singled out young teenage defender Emmanuel Mbola of Armenian club Pyunik Yerevan who had a good outing against Egypt as a future mainstay in left-back that, for the last four years, has been the sole preserve of Joseph Musonda from Lamontville Golden Arrows of South Africa.
The news almost certainly means Andrew Sinkala, Moses Sichone and Clive Hachilensa’s futures with Zambia are looking bleak.
In other news, Zesco United’s Caf Africa Chmapions League opponents Africa Sports are expected on Thursday ahead of Saturday’s 1st round, return leg game at the Trade Fair Grounds in Ndola.
However, reports from Abidjan are that Africa Sports Italian-born coach Antonio Nobile has quit bringing an end a successful two-year stay at the club in which he has witnessed league wins in 2008 and 2007.
Nobile said to have quit last week after two successive league defeats in as many games played in the new Cote d’Ivoire season and also cited professional reasons for leaving.
Africa Sports’ management however, is still hoping Nobile will have a change of heart and travel with the team to Zambia on Wednesday.
Zesco and Africa Sports are tied at 0-0 from the first leg played on March 15 in Abidjan.
Meanwhile, Red Arrows on Tuesday left for Nigeria to face Ocean Boys in the two sides Confederations Cup 1st round, return leg match this Saturday.
Arrows enjoy a 2-0 advantage from the first leg played at Nkoloma Stadium in Lusaka on March 14.
President Rupiah Banda says that the forthcoming National INDABA scheduled for 4-5th April is not political but intended at deliberating and solving the economic problems facing the country as a result of the global economic recession.
In an interview with ZANIS at Matsapha airport in Swaziland shortly before his departure back to Lusaka, Mr. Banda pointed out that it is sad that some political parties have misinterpreted the planned INDABA.
“It is an economic INDABA intended to enable Zambians talk about their country and to find ways overcoming the effects of the global financial crisis,” explained Mr. Banda.
Government has in the 2009 national budget provided a number of incentives aimed at cushioning the impact of the global economic melt down on the country’s economy.
President Banda was in Swaziland to attend a one day Southern Africa Development Community-SADC Extraordinary summit aimed at discussing and charting the way forward on the economic recovery plan for Zimbabwe and to also resolve the current political unrest in Madagascar.
And Mr. Banda has described the one day extraordinary summit which came to a close last night as a success.
He further commended King Mswati III and his government for organizing the summit saying countries in the region are committed to solve problems affecting member states.
Mr. Banda who outlined some of the key issues which were resolved in the summit on the economic recovery plan for Zimbabwe and the political insecurity in Madagascar said the Heads of States and governments in the region are happy with progress made on the implementation of the unity government.
He however said SADC heads of states have agreed to work our measures of resuscitating the economy of Zimbabwe.
Meanwhile, President Banda has expressed concern that men and women in uniform are behind the violation of the constitution in Madagascar.
He said what happened in Madagascar was unconstitutional saying the ousting of a legitimately recognized government of President Marc Ravalomanana and ushering into office of a President Andre Rajeolina is another serious violation of the constitution for Madagascar.
“Indeed the constitution has been violated in Madagascar and we have seen men and women in uniform putting the law in their own hands by bringing in a person who is not of constitutional age among other acts,” he said.
Mr. Banda pointed out that all SADC countries are constitutional and SADC Heads of State have since condemned what happened in that country.
Mr. BANDA was among eight Heads of States and government who attended the one day Extraordinary summit which was chaired by His Majesty King Mswati III who is also Chairperson of the organ on Politics, Defense and Security.
President Banda has since arrived back home. He was received by a number of cabinet ministers, government heads and the ruling MMD cadres at the international airport. Defence chiefs were also on hand to welcome the President back home.
Among the notable were Vice President Anthony Kunda, Information and Broadcasting minister Lt. General Ronnie Shikapwasha, MMD National Secretary Katele Kalumba and other senior government figures
Police in Mwinilunga district have arrested three Food Reserve Agency (FRA) officials in connection with the disappearance of over 1,000 by 50 kilogrammes bags of maize.
The missing 1,061 bags of maize are valued at K58.3 million.
This came to light yesterday after Northwestern province marketing coordinator, Mwansa Chamatete took stock of the bags of maize kept in the FRA depot in Mwinilunga.
Mr. Chamatete reported the matter to Mwinilunga District Commissioner, Webster Samakesa and other district administration officials.
And Mr. Samakesa disclosed that police in the district have already arrested three people in connection with the missing maize.
He said the trio was arrested after Mwinilunga District Cooperative Union officials reported the suspected missing maize to the police.
He said he would allow the law to take its course over the matter.
Among the arrested officials is Warehouse manager in Mwinilunga, Kenny Chivweta.
The Human Rights Commission (HRC) has expressed concern at the number of Labour rights violations in the country.
Officiating at a quarterly media briefing in Lusaka today, HRC vice chairperson Palan Mulonda said the commission is aware that such violations as unwarranted dismissal of workers without notice or without giving them their terminal benefits are on the increase in the country.
He has urged the investors and other employers to adhere to the provisions of the Zambian laws.
Mr.Mulonda advised all employees to be cautious when making agreements with prospective employers by ensuring that they understand the contents of the employment deal to avoid losing out.
He stressed that the PHRC is saddened by the global financial crisis and its impact on the labour market that has resulted in increased job losses.
Mr. Mulonda further advised the police to avoid excess in their conduct such as abusing suspects through brutal interrogation methods like beating and intimidation.
He urged members of the public to cooperate and support the police service in ridding communities of dangerous criminals by reporting them so that they face justice.
Chipata District Commissioner, Nicholas Banda, has called upon business entities in the district to always pay taxes to the Zambia Revenue Authority (ZRA) because it was their legal obligation to do so.
Mr. Banda said it was important that citizens paid taxes to help government generate the resources, especially this time when the world was undergoing an economic crisis.
He reminded the business persons that if they evaded tax, they were contributing to the underdevelopment of the country.
He was speaking when he officially launched the Zambia Revenue Authority (ZRA) seminar on the tax payers’ appreciation week, at a meeting held at Luangwa Lodge in Chipata.
Mr. Banda said Zambia was not spared from the economic crisis and therefore, there was need for ZRA to embark on an aggressive tax enforcement campaign so that tax payers could comply.
“Evading paying taxes including offences like smuggling goods in and out of the country will not develop this nation and if citizens do not participate in developing it, no one from outside the country will do it,” he said.
Mr. Banda said every citizen had a responsibility in the development of the nation and complying in tax obligations was one of them.
He has since called on citizens to access information about ZRA in order for them to appreciate authority as an important ally in national development and not as an enemy of tax payers.
Mr. Banda noted that ZRA was tasked with providing statistics, enforcing all relevant legislation on behalf of government, giving advice on tax policy to government and facilitating international trade.
He challenged the business persons, who attended the seminar, to know the national annual budget.
ZRA Assistant Commissioner, Mathias Mwela, commended government for its tireless efforts in upgrading and putting up modern infrastructure at some of the borders areas such as Chirundu and Katima Mulilo.
Mr. Mwela said the authority was looking forward to beginning improvement works at Nakonde, Kazungula, Mwami and Kasumbalesa border posts.
He said the poor state of infrastructure at some border posts has remained a challenge to the Zambia Revenue Authority.
The Anti Corruption Commission (ACC) spokesperson, Timothy Moono says the commission has nabbed a police officer in Livingstone for graft.
Mr. Moono identified the officcer as Sergeant Muyoti Mundia aged 48, of House No.5, Victoria Falls Jack Compound.
He said the policeman was arrested yesterday by the ACC for soliciting K500,000.00 from the named employee of Muja Clearing and Forwarding Agency as reward for having released him from police custody.
Mr. Moono said the suspect was nabbed after investigation revealed that he received K250,000.00 as balance money which was later retrieved from him.
Mundia has been formerly charged for one count of corruption practices by public officer contrary to section 29[1] of the ACC Act.
He has been released on bond and will appear in court on 29th April 2009 for plea.
Standard Chartered Bank has introduced a new account called Junior Millionaire Account that will serve the needs of children in Zambia.
Head of Consumer Banking in Zambia, Ralph Watungwa, who officiated at the launch of the new account at the head office, said his Bank is committed to providing simplified products that will help customers meet their ambitions.
Mr. Watungwa said the Junior Millionaire Account is a savings account targeted for persons below the age of 18 years to enable parents save for their children to pay school fees, medical bills, to start investment funds, among other features.
Mr. Watungwa said the Junior Millionaire Account is in line with the Bank’s strategy to foster its long standing partnership with the youth.
He added that the product offers one of the highest interest rates in the market to ensure that children achieve their dreams.
He further explained that the introduction of the unique product will open an opportunity for greater nationwide cooperation between the Bank, Schools, Government, parents or guardians and the community.
Nyimba District Commissioner Alexander Miti has advised people in his district to assess their household food needs before selling their maize produce this year.
In a telephone interview with ZANIS, Mr. Miti said people in the district should secure enough domestic food supplies before selling their produce.
He observed that once people kept enough food supplies for domestic consumption, they would stop depending on relief food from government.
Mr.Miti noted that valley areas of Lwembe, Nyalugwe and Mwape that were on government assessment for relief food would also produce good yields due to the favourable rainfall pattern experienced this year.
“Most fields are looking promising except a few where fertilizer was not applied, even then the soils are fertile,” he said.
He further advised the farmers to stop depending on relief food saying this kind of food should only be given out when there is an avoidable disaster.
He said the rainfall pattern, coupled with the increased allocation of farming inputs under the Fertilizer Support Program (FSP), had led to an increase in food production in the district.
Farmers in Nyimba district received an increased amount of farming inputs from 925 packs in 2007/2008 farming season to 1,480 in the 2008/2009 farming season.
Mr. Miti disclosed that over 50 cooperative societies benefited from the farming inputs.
First Lady Thandiwe Banda has challenged Zambians to appreciate and acknowledge positive developments that the health sector was scoring in the country.
ZANIS Kitwe reports that Mrs. Banda said despite the many challenges that the health sector was facing, a lot of positive strides had been recorded in the growth and delivery of quality health care services to the public.
Mrs. Banda, who was speaking at the Zambia National Service (ZNS) after winding up her three day tour of health facilities in Kitwe yesterday, said it was sad that people were always negative when talking about the health sector.
She however observed that Kitwe was facing a challenge of health facilities and has since called on Zambians and cooperating partners to help improve these facilities.
”A country cannot be productive, let alone have a promising future if its citizens have ill-health,” she said.
Mrs. Banda has since commended all health workers at health institutions she visited for being committed to their work despite having many challenges.
Meanwhile, the First Lady, Thandiwe Banda, has donated assorted foodstuffs, beddings and kitchen utensils to Mapalo Vineyard Christian Community School in Ndola.
Speaking when she made the donations in Ndola today, Mrs Banda said although the donation was small, it would help mitigate the sufferings of the vulnerable children at the school.
The donated items include blankets, plates, pillows, footballs and cakes among others.
And speaking at the same occasion, Ndola District Commissioner, Moses Mumba, said the donated items will greatly help improve the welfare of children at the school.
Mr Mumba also commended the church for working with government in providing education to the vulnerable children in society.
He appealed to other churchs and Non Governmental Organisations (NGOs) to emulate the First Lady’s gesture.
And Mapalo Vineyard Community School teacher, Lewis Musonda, said lack of the basic educational materials and infrastructure hinder children from realizing their maximum potential in education.
Mr Musonda said the school faces a lot of challenges in providing quality education to the vulnerable children. He cited challenges such as inadequate classroom blocks, lack of desks and text books.
He also cited difficulties in sourcing money for the teachers’ salaries which usually comes from contributions from the church.
Mr Musonda appealed to government, NGOs and the civil society to help the school with the needed learning materials such as books and in raising the teachers’ salaries so that the orphaned children at the school can receive decent education.
The school, which is run by the Seeds of Hope International in Partnership with Mapalo Vineyard Christian Fellowship, has 93 girls and 84 boys.
ZESCO, a monopolistic power utility, has consistently asserted that it does not operate profitably on account of low tariffs to justify the tariffs hike. The 66% tariff will be introduced with “approval” from the Bank Governor and ERB in spite of opposition from ZACCI and a Professor of Economics at UNZA.
The Bank Governor and ERB should understand that raising tariffs will have implications on a fragile economy. The Governor’s argument is that raising tariffs would attract investments to the electricity sector. When the same thinking was applied to the mines and the new tax regime introduced in 2008, accruing mining tax revenues were expected to stimulate economic growth. Unfortunately, the Government recently reneged by suspending the new mining tax policy. While the idea is intended to prevent greedy mining companies from closing shop, it is also envisaged that lower tax regimes will act to stem capital flight as mining companies scale down their operations and in some cases cease operations completely. In the same vein, one would expect similar economic rationale to be applied in the case of ZESCO tariff increases.
It’s common knowledge that the cost of electricity generation in Zambia is one of the lowest in the region but Zambians pay higher tariffs than those obtaining in neighbouring countries whose cost of generation is higher. This is expected where operational inefficiencies and personal interests are factored into the equation. However, one wonders what economic model is applied to arrive at such an exaggerated 66% increase. It is shameful that ZESCO is allowed hike tariffs to cover their inefficiencies and also as a scheme to award themselves unjustified salary increments and benefits.
It is indisputable that the 66% tariff hike will negatively impact the economy, especially consumers at household level. These consumers will be required to shell out 66% more than they have in the past. Overall, spending will be hit hard enough to cause possible reduction in total household expenditure on food. Further, the new tariff will make electricity more expensive and less affordable, especially for the majority of households currently struggling to pay for electricity. Eventually, some consumers will be compelled to make hard choices: a meal on the table or electricity in their homes. ZESCO’s Managing Director has the audacity to ask Zambians not to construe the proposed tariff hike as a way to financially disadvantage them
Finally, the proposed tariff will affect business and commerce alike. As a consequence, upward price adjustments to offset the new tariff are inevitable. Such myopic and ill-conceived tariff hikes are more likely to exacerbate poverty than stimulate economic growth.
The Alternative
Zesco’s must expand its revenue base by connecting more consumers to a supply and also make the current erratic supply reliable. A larger customer base will aid in the attainment of economies of scale and also accord room to tinker with the tariffs to make them affordable and beneficial to consumers too. Once this is achieved, it will be possible to effectively distribute the cost-recovery tariff among a larger customer base.
It will be meaningless to attempt to achieve economies of scale alone without instilling necessary fiscal discipline in the manner revenue is utilized. Therefore, the government must introduce a heightened degree of fiscal oversight to ensure that revenues are spent on important infrastructural power projects. While government oversight must be exercised to ensure financial discipline, temptation to tap the power utility’s revenues as a source of salaries for civil servants must be avoided.
A Lusaka-based economist says there is no indication that inflation levels have dropped.
Mr Chibamba Kanyama pointed out that the Credit crunch has caused an increase in prices in all commodities such as energy, Mealie Meal and other essential necessities.
He said it is not right to show inflation levels based on hotel and tourism because most essential products are trading at very high prices.
Mr Kanyama pointed out that price levels have increased to an extent that it is hard to sustain companies, and most likely, more workers will be laid off.
He said this in an interview with ZANIS in Lusaka today.
Mr Kanyama said he sees a situation getting worse because prices will continue to rise adding that the cost of living will go up.
He observed that Lusaka and Copperbelt residents are finding it hard to support their families because there is no cash in their pocket.
Mr Kanyama said liquidity of banks is another area of concern, saying issue analysis is showing that narrow products are not cheap any more but expensive.
He pointed out that inflation levels are higher than last month, adding that it is not possible that inflation levels are most likely to keep going up.
Mr Kanyama said input cost is not tallying with labour because most companies will need to increase their salaries to match the prices of commodities at market levels.
He observed that more retrenchments will be carried out because there is no pocket power at household level.
The high policy dialogue between government and Cooperating Partners (CPs) has come to an end in Lusaka with donor community reaffirming commitment to work closely with the Zambian government in implementing developmental projects in the country.
The meeting, which was chaired by Finance and National Panning Minster, Situmbeko Musokotwane, was attended by the Ministers of Agriculture, Energy and Water Development, Justice and Local Government and Housing.
The topics discussed during the meeting were on decentralization, microeconomics, governance, and developmental sectors such as agriculture and energy among others.
Speaking at the close of the meeting, Cooperating Partners Chairperson, Kapil Kapoor, said the donor community stands ready to assist government in all sectors of national development.
Dr Kapoor said the CPs are encouraged with the strides that the government has made towards diversifying the economy through introducing the Fertilizer Support Programme (FSP) and also having a fiscal decentralization strategy in place by the end of 2009.
He said that on micro economic issues, the dialogue has noted the impact of the global economic crisis on Zambia through the collapse of demand for copper, adding that there is need for having a rapid economic diversification.
He further noted that Cooperating Partners recognize the role that good governance issues, such as the fight against corruption, adequate funding to the office of the Auditor General and continued voter registration play in the developmental process.
And Finance and National Planning Minister, Situmbeko Musokotwane, thanked the continued support in implementing developmental projects in the country.
Dr Musokotwane said today’s dialogue with the donor community will go a long way in creating donor and public confidence in the manner Zambia utilizes the funds.
On the decentralization policy he disclosed that government will implement the fiscal decentralization policy directly from the Ministry of Finance to councils under the Ministry of Local Government and Housing.
He also clarified that government had no intentions to take over the management and running of the mines that are under care and maintenance.
Dr Musokotwane further briefed the CPs on the status of the power rehabilitation project and government’s commitment to increase rural access to electricity.
He further assured the partners that government will ensure that all the suggestions made by at the dialogue will be put in consideration for effective implementation of donor funded projects.
