Yesterday, Finance Minister Margaret Mwanakatwe proposed to lift the suspension of the export duty on manganese ores and concentrates which was put in place in 2012 and increase duty by 15 percent from 10 percent in the 2019 national budget.
Mrs. Mwanakatwe who presented the 8th National Budget to parliament since the PF administration came into power, further proposed to introduce an export duty on precious metals including gold, precious stones and gemstones at the rate of 15 percent.
She informed the house that import duty at the rate of 5 percent on copper and cobalt concentrates will be introduced in the 2019 budget.
The Finance Minister stated that mineral royalty tax will be made non-deductible for income purpose.
Mrs Mwanakatwe also said that government will continue to promote exploitation of industrial minerals and gemstones by making available geological information.
Mrs Mwanakatwe told Parliament that the Development Mineral Capacity Building Programme that seeks to promote small-scale mining will continue in 2019.
She stated that government wants to see mining companies engaging in environmentally and socially responsive mining.
The Finance Minister informed the house that government has made progress in the implementation of the Mineral Production Monitoring Support Project aimed at enhancing monitoring of mineral production and exports.
Mrs Mwanakatwe disclosed that currently all the large scale mining companies are on the system.
She informed the house that the system will be extended to small and medium mining companies as well as other minerals beyond copper.
Mrs Mwanakatwe said the system will empower government to collect accurate revenue from mineral royalties and other mining taxes.
Meanwhile, The Bankers Association of Zambia (BAZ) said that the 2019 budget gives a lot of hope. BAZ Chairperson Kola Adeleke says the budget has addressed issues to do with revenue collection.
Mr Adeleke said that Finance Minister Margaret Mwanakatwe has broadened revenue collection and that the budget has given a lot of confidence to both foreign and local investors.
And, French Ambassador to Zambia Sylvain Berger said that the 2019 budget austerity measures are necessary given the country’s macro-economic conditions.
Mr Berger said that the measures are likely to benefit both the corporate and social sectors. He said his government will keenly follow the implementation of the announced policies.
And COMESA Secretary General Chileshe Kapwepwe has described the budget as bold. Ms Kapwepwe pointed out the changes in the mining tax regime which are likely to boost revenue collection.
Economic Association of Zambia president Lubinda Haabazoka said that the budget contains a lot of positive steps like the sales tax.
Dr Haabazoka said that the budget reflects the country’s current macro-economic conditions.
However, UPND former Chief Whip and Mazabuka Central Member of Parliament Garry Nkombo described the budget as cosmetic as the previous budgets that have been presented in the past years.
Mr. Nkombo told journalists at parliament buildings that the budget was sugar coated to make citizens feel as though things will get better, when the worst is yet to come.
He has predicted that come March next year, the cost of living will be unbearable as commodities will go high and citizens will be taxed more.
Mr Nkombo stated that money has been put in non priority areas such as public order which he says is not necessary because the country is not in any war situation.
He has further pointed out that the allocation of 6.1 billion Kwacha towards road infrastructure and for continuation of the Link Zambia 8000 project puts the government at loggerheads as it is against what the government has been preaching on prioritizing projects that are 80% complete.
Mr Nkombo has since urged Zambians to brace themselves for harder times in 2019 as they will have to tighten their belts.
More Revenue for the government from the increased mineral taxes.However,who will the money be used.
1.Salaries for for 106 District Commissioners
2.Salaries for 15 Supreme court Judges.7 Concourt judges(22 altogether…why so many of them)
3.More international trips by the president and his usually large entourage
4.Unnecessary by-elections as the PF government is buying opposition councillors.
5.Funds leakages due to corruption and misappropriation
and the list goes on…..
NOT SO FAST – YOU CAN’T CELEBRATE THE BUDGET SPEECH, YET. THE OWNERS OF THE MINING COMPANIES WILL FIND A WAY OF PASSING IT ON TO GOVERNMENT AND TO THE PEOPLE OF ZAMBIA.
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These Mines double h sold kuli bamwisa represent a hot story/issue to the Zambian Economy. It’s not for the fainthearted. You tax or levy them, they either target your FOREX or LAY OFF miners. Are you ready to see your people lose jobs? Then to be seen to be working, coupled with the need to remain politically percieved responsible, government quickly reverse the mineral royalty thing. This has happened before. We are counting down to the Mines’ response. I hope Govt will put its foot down this time no matter what comes. RB bowed.
I didn’t understand any of Maggie’s Scottish English and speed. The sign interpreter was just making up gestures, there was no way he could follow Maggie’s speed.
Parliament started extremely slow and sleep they thought it was the MMD English, alash, they got a shock of their life. The lady is ready to be president.
Cina cabwera HAGAIN!
Signs of a maturing opposition? Imagine UPND has agreed with the ruling party! They never do so perhaps things are changing for the better
The first achievement scored by the Budget is that it managed to bring together 2 divorcees in Mupanga and Margaret Mwanakatwe. Margaret has always been an employee, when she attempted to do business she lamentably failed. She still owes CEEC money in unpaid loans. She doesn’t know what the increase in TOT will do to SMEs.
I hope Kakoma won’t he was misquoted.
Now i understand the reason why Garry Nkombo was removed as tonga party UPND’s chief whip.The nigga is as negative about Zambia as HH himself!!While the majority people are appreciating next year’s budget,Nkombo is wishing us hell-what a useless politician!!!Bo Garry Nkombo,we all know that you celebrate with Kainde whenever things are bad economically in Zambia!!BUT NO WEAPON FORMED AGAINST ZAMBIA SHALL PROSPER!!
Bravo to Hon.Mwanakatwe and PF Govnt for presenting a bold budget!!Thanks to Charles Kakoma too for appreciating 2019 budget!!
Im just asking as a layman
We hope to raise K56bn and we will spend K86,6bn
If my wife ran my household like this, I dont think I would be cheering her budget.
25% of all funds boma raises first goes to accumulated interest !
The shortfall of K30bn must be found somewhere. We need to borrow. We need tonpay more and more interest.
Dod you know ? Situmbekos last budget was for spending K27bn. Within a few years, we have started spending K86,6bn
Adopt the brace command and prepare for a plane crash !
Including the salt from the neighbours, you spend more than budgeted by your wife. Add free labour from your children and relatives – even more.
Amazingly bold budget this is. Pf intutiveness is awesome & uplifting just as the infrastructure opening the country and making it well worth living in. That Stumbeko, Magande and Fundanga and co. flew first class to receive their puppet accolades of best world banker, finance minister……e.t.c – puke while running budget surpluses & massive foreign reserves. Better improved water, sanitation & infrastructure & (malls!!) than ego-centrism and demi-godness of a few.
@ Ayatollah Please confirm your stories before you comment. The CEEC loan has long been paid for in full!
It appears Ayatollah has some issues with this Maggie woman.
This is the language we want to here. Politics of substance, not that doom and gloom all the time. It looks like someone really sprayed doom in one’s mouth. Well done UPND, we hope you have come of age.
hear
UPND has become a makeshift party without a solid stand on policies. How do support uncompetitive taxation on mines? UPND kuwawafye!
Signs of a maturing opposition? Imagine UPND has agreed with the ruling party! They never do so perhaps things are changing for the better