Government will introduce a windfall tax on base metals at a minimum rate of 25 percent and increase mineral royalties to 3 percent from 0.6 percent, Finance Minister Ngandu Magande said on Friday.

Magande said during the 2008 budget presented in parliament that the new taxes would be effective from April 1, 2008.

“For copper, the windfall tax shall be 25 percent at the copper price of $2.50 per pound but below $3.00 per pound, 50 percent … for the next 50 cents increase in price and 75 percent … above $3.50 per pound,” Magande told parliament.

He gave no details of rates for other base metals.

Magande said the government would also reintroduce withholding tax on interest, royalties, management fees and payments to affiliates or sub-contractors in the mining sector at the rate of 15 percent.

“Effective 1st April … the corporate tax rate will be 30 percent, the mineral royalty rate on base metals will be 3 percent of gross value,” Magande said. Corporate tax was previously 25 percent.

He said the new taxes were aimed at ensuring Zambia benefited from its vast copper and cobalt mines, the country’s economic lifeblood.

The rise and introduction of some taxes is a direct response to complaints by the opposition, trade unions and civil society that Zambia was not getting enough benefits from its mineral resources.

Magande said the new revenue from the copper mines would allow the government to increase investments in education, health and other social sectors.

“These measures are competitive, reasonable and balanced. The expected additional revenues in 2008, as a result of these new measures are estimated at $415 million,” Magande said.

Magande said preliminary data showed copper output marginally rose to 523,435 tonnes last year versus 515,618 tonnes in 2006 while cobalt production declined by 9 percent to 4,229 tonnes from 4,648 tonnes in 2006.

Copper output was significantly below the 670,000 tonnes Zambia had forecast for 2007.

Magande gave no production forecast for 2008, but analysts have warned that production will be hampered by power shortages, which has already forced copper mines to reduce output.

Zambia’s national budget deficit was expected to widen to 3.2 percent of gross domestic product (GDP) in 2008 from 0.95 percent last year.

Magande said in his 2008 budget speech to parliament that the economy should grow by 7 percent this year after expanding by 6.2 percent in 2007.

He said inflation would average 7 percent in 2008 compared to an 8.9 percent average in 2007.

Download the full budget speech HERE

Some broiler chicken breeders in Kasama are reportedly mixing feed with Anti-retrial Viral (ARV) and contraceptive drugs to feed their chickens.

Sources who declined to be mentioned told ZANIS that most of the chicken breeders are using the drugs which they are buying from the local drug stores in the area to mix with chicken feed so that they could grow fat and faster.

The sources cited an example of a retired civil servant whom they alleged to have been using the same method of rearing chickens which he later sells at k18, 000 per chicken.

The said chickens were weighing 2.5Kg each saying the growth was abnormal for chickens to be ready in three weeks.

And Kasama District Veterinary Officer Dr.Webby Chibomba confirmed having received such complaints from the general public that some chicken breeders were using ARVs and contraceptives to feed the chickens.

He suspected that the culprits must have some medical background while others are acting out of ignorance.

Dr. Chibomba told ZANIS in an interview that last year his office received similar complaints which he later forwarded to Drug Enforcement Commission (DEC) in Kasama and recommended for the arrest of the suspect to pave way for investigations but was told to wait. Up to now no answer has come from DEC.

He said his department has no testing laboratories but instead depend on other stakeholders like DEC and health which handle drug abuse offences.

He explained that chicken breeders who are using the said drugs were drugging the consumers illegally saying it was a serious offence according to the laws of Zambia.

Dr. Chibomba further explained that the method has serious side effects on human lives because the white cells get impaired thereby affecting the immune system especially in people living with HIV/AIDS as the viruses become resistant to the treatment.

The veterinary officer lamented that it also affects family planning in couples while it might result in impotence in consumers.

He added that it was sad to note that some breeders have even gone to an extent of injecting chickens with penicillin while selling them out.

He expressed worry that this has resulted in disease resistance when one gets sick to respond to the prescribed medicine.

Meanwhile Dr. Chibomba said his department has embarked on an inspection programme which will be conducted on regular basis to ensure that the chickens are fed with right food.

He added that the hindrance to effecting the programme would be lack of transport since the work requires mobility to monitor the growth of chickens.

The Veterinary Officer, however, said the programme is an inter-sectoral programme which needs team work from all line ministries and support from stakeholders as the fight is a noble cause if the culprits are to be fished out.

He has since appealed to the general public not to be buying broiler chickens anyhow or supplement with indigenous chickens which feed mainly on indigenous foods.

First Lady Maureen Mwanawasa’s presidential candidature has received support from another chief with some urging her to declare her position early enough. Chieftainess Kalaba of the Ushi people in Mansa district has said First Lady Maureen Mwanawasa has good leadership qualities and therefore can make a good president of Zambia.

The chieftainess also said her chiefdom would support Mrs. Mwanawasa’s candidature as president of Zambia.

In an interview with ZANIS at her palace yestarday, Chieftainess Kalaba said through the Maureen Mwanawasa Community Initiative (MMCI) and her interaction at international level the, First Lady has shown to the country that she can lead the country to prosperity.

The traditional leader called on the entire women folk in the country to rally behind and support Mrs. Mwanawasa if she stands for presidency.

“There is nothing wrong for a female president and it is not about gender that we are supporting her but about her ability and qualification to lead this country better than some men who have so far expressed interest,” chieftainess Kalaba said.

She said Zambia was ready to have a female president and asked women to support each other.

“Those assertions that we are not ready for a female president are not true. Leadership is granted by God. So if God has this time chosen a woman who are to object,” said the Cheiftainess.

Meanwhile, the traditional ruler has advised Mrs. Mwanawasa to consider standing as president and announce her interest in the position of president early enough.

Some sectors of the community have said the First Lady was suitable to run for national presidency in the 2011.

And recently President Mwanawasa said that MMD members interested in party positions should come out and announce the positions they were aspiring for.

Dr. Mwanawasa, however, cautioned Cabinet Ministers against being preoccupied with campaigns at the expense of work.

Government has warned the clergy against using the church to gain entry into politics.

Community Development and Social Services Deputy Minister Elijah Muchima says the church should provide direction to the nation and not to oppose it.

Commenting on the composition of the National Constitutional Conference (NCC) delegates, Mr. Muchima noted that those who have refused to participate in the constitution making process are disobedient and should blame themselves.

Mr. Muchima said this in Rufunsa in Chongwe when he officiated at the 10th anniversary of Nyampande Orphanage and Community School that concided with the launch of Chikondi Foundation.

The Deputy Minister maintained that government will go ahead with the NCC but that it is rather dismayed that the church is not doing enough to help government in the constitutional making process.

Mr. Muchima advised the church to rally behind President Levy Mwanawasa as he continues to govern the nation with his good leadership, which has started bearing fruit economically.

Over 500 members NCC registered as participants while some quarters of society among them the Oasis Forum have vowed not to participate in the NCC.

The Patriotic Front has challenged Former President Frederick Chiluba to carefully read its statement about his connection to the Reformist group and respond accurately.

PF Spokesperson Given Lubinda told ZANIS in an interview today that Dr. Chiluba’s reaction to the PF’s statement at a PF press briefing in Lusaka on Wednesday was misplaced and holds no water.

Mr. Lubinda was reacting to Dr. Chiluba who through his spokesperson Anthony Mwamba warned the PF not to embark on a political war that might destroy the country’s largest opposition party.

Mr. Lubinda said the PF only wanted Dr. Chiluba to disassociate or associate himself with the group of PF MPs calling themselves the Reformist group that is alleged to be planning to replace Micheal Sata with Dr. Chiluba as PF President.

He added that members of the group have informed the PF that Dr. Chiluba has some links with them saying he should confirm or deny honestly.

On Wednesday, the PF held a Press Briefing and said it had received information that the Reformist Group was planning to oust party president Micheal Sata and replace him with Dr. Chiluba.

In his reaction, Dr. Chiluba said the statement was irresponsible and provocative and warned the PF not to embark on a political war that would promote internal wrangling and destroy the party.

Meanwhile, Patriotic Front aspiring candidate for the Mpika Central seat in the 2006 tripartite elections, Muswema Sampa, has challenged the suspension from the party slapped on him by the constituency chairman, Henry Chama.

Mr. Muswema has argued that the suspension imposed on him is personal and based on false allegation meant to tarnish his name to the mass organs of the party ranks,.

He complained that no hearing was given to him by the chairman for him to have passed that decision on him, saying it was injustice on his part has well as abuse of authority of office by the chairman.

Mr. Muswema also said that membership in PF has no identity but depends on someone’s heart or love for the party, hence visiting the people especially the electorates in order to continue building the party is not a crime.

He has since called the suspension as total fabrication of party issues only aimed at attracting the attention and sympathy of the party president Mr. Sata for what is going on in the constituency concerning the general outcry of people on development in the area.

Mr. Muswema said he is being suspended for allegedly causing confusion in Mpika Central Constituency by enticing the party members to pass a vote of no confidence against the current area member of parliament, Mwansa Kapeya.

Efforts to get a commend from the Provincial Chairman, Jim Sinyinza, failed as he could not pass a word on the same development through his mobile phone.

The opposition United National Independence Party (UNIP) has adopted Husty Moffat Mwachilele, a prominent Kanyama businessman to constest the forthcoming Kanyama parliamentary by election.

Mwachilele is a renown former Councilor for Kanyama for seven years from 1991 – 1998

The former ruling party has also fielded in two female candidates – Agness Mukuka and Margret Phiri – to contest the local government by-elections in Lusaka’s Lilayi and Harry Mwaanga Nkumbula wards respectively.

UNIP Deputy National Secretary General, Alfred Banda, confirmed this in a statement to ZANIS in Lusaka today.

Mukuka is UNIP Women Affairs Lusaka Provincial Secretary.

She is also a past Lusaka Branch Co-ordinator of the National Union for Commercial and Indusrtial Workers (NUCIW), former Trade Union leader and former TAP Zambia Limited employee and currently the Chairperson of St. Marys Chilanga Catholic Women’s Council.

Phiri is also a a prominent Kanyama business woman and a renowed UNIP official who has lived in Kanyama for the past 37 years.

Reverend Banda expressed confidence of scooping the Kanyama Parliamentary seat, saying the party is ready for the forthcoming parliamentary elections.

Reverend Banda is now appealing to the electorates to vote for UNIP as the party is its all-weather developmental partner.

And Rev. Banda has disclosed that UNIP will also field candidates in Moomba ward in Kabwe in Central Province, and also other Local government by-elections in Kawambwa and Nchelenge districts in Luapula Province.

Meanwhile, the Anti-Voter Apathy Project (AVAP) has advised political parties to adhere to the Electoral Code of Conduct (ECC) in the forthcoming Kanyama parliamentary by-election.

AVAP Executive Director Bonny Tembo says failure by political parties to adhere to the ECC would attract punishment by the Electoral Commission of Zambia (ECZ).

Mr. Tembo observed that political parties have a tendency of breaching the ECC such as the use of government vehicles coupled with rampant distribution of wrappers and misuse of public resources and campaigning on the actual voting day, saying this was against the code of conduct.

In separate a interview with ZANIS in Lusaka today, Mr. Tembo said his organisation has since embarked on a vigorous voter education campaign to sensitise the electorate on the voting process.

Mr. Tembo further cautioned political parties to desist from imposing candidates on the electorate.

The AVAP Chief said imposition of candidates in the by-election will cause voter apathy.

The Electoral Commission of Zambia (ECZ) has set February 21, 2008 as the date of the Kanyama by-election.

The Kanyama parliamentary seat fell vacant following the death of PF MP Henry Mtonga.

United Party for National Development (UPND), United Liberal Progressive Party(ULP), Patriotic Front (PF), All People’s Congress Party (APC) and the ruling Movement for Multi-Party Democracy (MMD) are also fielding their candidates in the Kanyama by-election.

Chief Mwanachingwala of Mazabuka has uncovered a scam in which the opposition United Party for National Development (UPND) is allegedly soliciting for donations for flood victims using the District Disaster Management Committee (DDMC).

The Chief told ZANIS in Mazabuka today that he is aware that the donations that were made by UPND President, Hakainde Hichilema to flood victims in Mazabuka were sourced from some named commercial farmers.

Chief Mwanachingwala said it is wrong for the opposition party to privately ask for aid using government structures without the knowledge of the local leadership.

He challenged Mazabuka Central Member of Parliament, Garry Nkombo, to account for the K10 million donation made by a Charles Cox, a commercial farmer in the area.

But Mr Nkombo dismissed the allegations as total lies.

Mr Nkombo told ZANIS in Mazabuka today that the donations made by Mr Hichilema did not come from the commercial farmers but from his (HAKAINDE) personal account.

He said the UPND president issued a cheque to PRAV Wholesalers who supplied mealie meal, cooking oil and other donations given to the flood victims in Magoye and Mazabuka constituencies before the controversial cheque was issued by Cox.

And Mr Nkombo says the K10 million donated by Mr Cox for flood victims will only be accessed once the cheque is cleared by the bank.

He explained that the supplier of the items earmarked for donations has indicated that he will only release the items once the cheque had been clearede by the bank.

Mr Nkombo also said there are no calls for suspicion because District Commissioner, Misheck Chiinda, is fully aware of the K10 million.

”I showed the District Commissioner the cheque last Sunday, so he should not be peddling lies about the donation. Why does he want to discredit my name when he is fully aware,” asked Mr Nkombo.

District commissioner, Misheck Chiinda however dismissed claims by Mr Nkombo saying he has never been informed about the donation from Mr Cox.

Mr Chiinda advised all organisations intending to assist flood victims to make their donations through the District Disaster Management Committee to which he is a chairman.

” I didn’t see the cheque. All I saw were the receipts he was flashing,” said Chiinda

Meanwhile, UPND has with immediate effect banned its members including Member of Parliament (MPs) from attacking the church mother bodies for refusing to participate to the National Constitutional Conference (NCC).

The ban by the opposition party’ s National Management Committee (NMC) follows media reports by Sinazongwe Member of Parliament (MP) Raphael Muyanda and his Mbabala counterpart, Emmanuel Hachipuka who issued anti-catholic church remarks.

Party Spokesperson, Charles Kakoma, said the remarks by the two MPs did not represent the party’s position regarding the church but maintained that the Church has always been an all whether friend in national development.

Mr. Kakoma said this in a press statement released to ZANIS in Lusaka today.

He said the party distanced from the attacks, innuendos and outbursts by Mr. Muyanda and Mr. Hachipuka on the Catholic Church or any other religious organization.

He said it is wrong for any UPND member to antagonize the church or any other faith based organization and their leaders because of their stand on the constitution making process or other political matters.

He said freedom of speech did not legally include inciting religious hatred either inside or outside parliament.

He warned that the party would not hesitate to publicly disown any member who continued to go against the party position.

The party Spokesperson has since urged its members to respect the decision of all those that have opted to stay away from participating to the NCC and those who have gone to participate in the NCC.

“The UPND wishes to distance itself from the attacks, innuendos and outbursts by the two MPs; Mr. Muyanda and Mr. Hachipuka on the stand by Catholic Church or any other religious organization. It is wrong for any of our members to antagonize the church and their leaders because of their stand on the constitution making process or any other political issue” he said.

As UPND we won’t hesitate to publicly disown such a member or person who goes against the party’s position,” Mr. Kakoma said.