NO KWACHA PAY­MENTS FOR MIN­ERAL ROY­AL­TIES

Daily Nation Newspaper - - Home News - By AN­NIE ZULU

MIN­ING houses will now pay their min­eral roy­alty tax in for­eign ex­change, Fi­nance Min­is­ter Mar­garet Mwanakatwe has said. Ms Mwanakatwe said this was one of the key mea­sures Gov­ern­ment had put in place to lessen the de­pre­ci­a­tion of the Kwacha against ma­jor cur­ren­cies. She ex­plained that the for­eign ex­change which would go straight into the Cen­tral Bank would help boost the amount of dol­lars within the bank. The Min­is­ter was re­spond­ing to Liv­ing­stone Mem­ber of Par­lia­ment Mathews Jere in Par­lia­ment yes­ter­day, who wanted to know what mea­sures Gov­ern­ment had put in place to mit­i­gate the de­pre­ci­a­tion of the Kwacha against ma­jor cur­ren­cies. “I can con­firm that one of the key mea­sures we have put in place is the min­ing houses will pay their min­eral roy­alty tax in for­eign ex­change. They won’t be get­ting that in Kwacha any more. They will be get­ting that for­eign ex­change straight into the cen­tral bank to boost the amount of dol­lars within the cen­tral bank,” Ms Mwanakatwe said. Ms Mwanakatwe also said Gov­ern­ment was en­sur­ing that there was fis­cal con­sol­i­da­tion. “The next thing we are do­ing is en­sur­ing that fis­cal con­sol­i­da­tion is hap­pen­ing, if you look at what we’ve done in the cost re­flec­tive fuel and in the bud­get to re­duce costs by an aver­age of 40 per­cent for Gov­ern­ment min­istries all that is an ef­fort to re­duce the de­mand on the Kwacha,” she said She added that Gov­ern­ment was also en­sur­ing that the coun­try’s ex­port ba­sis was strength­ened to mit­i­gate the Kwacha from de­pre­ci­at­ing. And Ms Mwanakatwe ob­served that the de­pre­ci­a­tion in Septem­ber, 2018 was mainly at­trib­uted to in­creased and lumpy de­mands of for­eign ex­change, no­tably for the pro­cure­ment of the pe­tro­leum prod­ucts that were com­piled and brought into the mar­ket in patched or­ders. She said that mar­kets state­ments aris­ing from rat­ings also fu­elled the de­pre­ci­a­tion. The min­is­ter was re­spond­ing to Kan­tan­shi Mem­ber of Par­lia­ment An­thony Mumba who wanted to know what fac­tors led to the sud­den de­pre­ci­a­tion of the Kwacha in Septem­ber 2018.

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