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(DAILY MAIL) State defends ‘stability’ fund

State defends ‘stability’ fund
By JERRY MUNTHALI

MINISTER of Finance and National Planning, Situmbeko Musokotwane, has defended the stabilisation fund which holds K242.5 billion collected from the new mining tax regime, saying the money will only be used during times of crisis.

Contributing to the debate on the report of the committee of estimates in Parliament yesterday, Dr Musokotwane said the idea of the stabilisation fund was not to take away money from the public.

Dr Musokotwane said Government would present a report on the implementation of the new mining tax regime.

He said it goes back 7,000 years when there were seven years of good yields and seven years of drought.

Dr Musokotwane wondered how people would survive if they harvested 20 bags of maize and consumed everything without considering what they would eat in future.

Dr Musokotwane assured the House that the money was safe.

He also said he had taken into consideration the recommendations of the committee on estimates to enhance the capacities of the ministries of Energy and Water Development and Home Affairs in terms of procurement procedures and poverty reduction.

He said these recommendations were applicable to all ministries.

Dr Musokotwane said Government intended to enhance capacity in the implementation of its programmes for development activities to bear fruit.

He said the passing of the public procurement bill was a way of enhancing the capacity of the ministries.

And in his maiden speech, Dr Muskotwane thanked Deputy Speaker of the National Assembly Mutale Nalumango for welcoming the new MPs to the House and hoped his presence would add value to the business of the House.

But Zambezi West MP Charles Kakoma (UPND) said when the House passed the law on windfall tax, it did not mandate the executive to defer or negotiate the tax with the mining companies.

He was surprised that Government created a stabilisation fund from the revenue collected from the new tax regime, which it would not have immediate access to.

Mr Kakoma wondered why Government wanted to use the money for fire-fighting when there was instability in the economy.

He urged Government to direct the Zambia Revenue Authority (ZRA) to collect the windfall tax.

Luapula MP Peter Machungwa (PF) advised Government to adequately fund the immigration department so that it could effectively collect non-tax revenue.

Moving the motion to urge the House to adopt the report of the committee of estimates, Lukulu East MP Batuke Imenda (ULP) told the House that while all the mining companies submitted windfall tax returns, only two companies out of 11 complied with the payment.

He said some of the defaulting companies requested an extension of the payment period.

Mr Imenda said all the companies that did not pay windfall tax were treated as defaulters, adding that the income tax provisions regarding the recovery of tax would apply.

He said companies that did not pay windfall tax cited cash flow difficulties arising from high production costs.

Kwacha MP Lombe Mulenga (PF) seconded the motion, which was unanimously adopted by the House.

Meanwhile, the committee on communication, transport, works and supply called on Government to liberalise the international gateway to allow for competition in the sector.

Moving the motion urging the House to adopt the report of the committee on communications, transport, works and supply, Siavonga MP Douglas Syakalima (UPND) said the security concerns raised by Government were unfounded.

He said a privately-run international gateway would serve as a back-up in the event that the international gateway operated by Zamtel broke down. Mr Syakalima said this would reinforce the existing security measures.

He said restricting the international gateway resulted in poor service and payment of high tariffs by consumers of international voice services.

Chisamba MP Moses Muteteka (MMD) seconded the motion that was unanimously adopted by the House.

And Minister of Education Geoffrey Lungwangwa yesterday told the House that there was political interference in the running of the University of Zambia (UNZA) from some opposition political leaders.

Contributing to the debate on the report of the committee on education, science and technology, Professor Lungwangwa said “these small politicians” thought they could sleep in the corridors of the institution and incite students because UNZA was in their constituencies.

He said he had received reports that the same politicians went to the extent of inspecting if light bulbs were working or not.

Dr Lungwangwa said universities should be places of tranquillity and advised politicians to stop interfering in the running of the institution.

Labels: MOSES MUTETEKA, SITUMBEKO MUSOKOTWANE, STABILITY FUND, WINDFALL TAX

posted by MrK @ 2:19 PM