Mu­tati un­veils K71.6 bil­lion bud­get

Daily Nation Newspaper - - HOME NEWS - By BUUMBA CHIMBULU

MIN­IS­TER of Fi­nance, Felix Mu­tati, has un­veiled a K71.6 bil­lion 2018 Na­tional Bud­get out of which al­most half of it will be fi­nanced by do­mes­tic rev­enue fol­low­ing the new tax mea­sures which have since been in­tro­duced.

This is an in­crease of K7.1bn from the K64.5bn un­veiled for 2017.

Mr. Mu­tati ex­plained that out of K71.6bn or 25.9 per­cent, K49.1bn would be fi­nanced by do­mes­tic rev­enues and K2.4bn by grants from var­i­ous co­op­er­at­ing part­ners.

He said the bal­ance of K20.1bn of the bud­get would be fi­nanced through do­mes­tic and ex­ter­nal bor­row­ing.

“Re­source mo­bil­i­sa­tion to sup­port the 2018 bud­get, is an­chored on en­hanc­ing tax ad­min­is­tra­tion through im­proved tax­payer ser­vices, risk man­age­ment, en­force­ment and com­pli­ance. This is nec­es­sary to en­sure that re­sources are mo­bilised in a cost ef­fec­tive and non-dis­tortive man­ner,” he said.

Mr. Mu­tati pro­posed to im­pose a prop­erty trans­fer tax at a rate of 5 per­cent on value at­trib­ut­able to a Zam­bian as­set in cases where in­di­rect own­er­ship or con­trol of a Zam­bian as­set changes out­side the coun­try.

He was speak­ing yes­ter­day when pre­sent­ing the plan to Par­lia­ment whose theme is "Ac­cel­er­at­ing Fis­cal Fit­ness for Sus­tained In­clu­sive Growth, With­out Leav­ing Any­one Be­hind."

Mr. Mu­tati also pro­posed to in­tro­duce an ex­cise duty of K2 per 50 kilo­gram bag of ce­ment to as­sist in mo­bil­is­ing funds for the in­fra­struc­ture de­vel­op­ment fund.

Still on taxes, the min­is­ter pro­posed to ad­just up­wards the base tax rate from to K365 per year from K150 as it had not been ad­justed for a long time.

He also pro­posed to ad­just up­wards the pre­sump­tive tax rates by 50 per­cent.

"I also pro­pose to re­move cus­toms duty in var­i­ous in­puts that are used in man­u­fac­tur­ing of stock­feeds and fish feed as well as ex­empt un­pro­cessed and semi-pro­cessed to­bacco from Value Added Tax (VAT)," Mr. Mu­tati said.

The min­is­ter also pro­posed to dis­con­tinue the 5-year in­come hol­i­days that was fa­cil­i­tated through the Zam­bia De­vel­op­ment Agency.

Mr. Mu­tati pro­posed to re­move the al­low­able de­duc­tion for con­tri­bu­tion to ap­proved pen­sion funds of K225 per month as there was al­ready re­lief given at the time when one got their lump sum pay­ment and an­nu­ities.

On non-tax rev­enue, Mr. Mu­tati pro­posed to in­tro­duce a land­ing rights charge of K3, 150 per tele­vi­sion chan­nel with less than 35 per­cent lo­cal con­tent while in­creas­ing TV levy to K5 per month.

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