- Stay Connected
Socialize
Thorny Rule 18 Revised
STEVEN MVULA, Lusaka
GOVERNMENT has revised and relaxed the controversial 2015 mining value added tax (VAT) regime due to slumping copper prices on the international market.
Minister of Finance Alexander Chikwanda announced yesterday in Parliament in a ministerial statement that VAT Rule 18 has been relaxed.
“Sir, I am pleased to inform this August House that as a listening Government, we have considered the submissions from the Chamber of Mines and we have proceeded to realign the provisions of Rule 18….”
“This will ensure that mining companies and all exporters are not unduly encumbered by administrative rules and in the process affecting their cash flows and operations,” Mr Chikwanda said.
The minister said the revision of Rule 18 is a clear demonstration of Government’s unfettered commitment to ensuring that regulations are not onerous but supportive to investment and business development.
Mr Chikwanda said Government is open to dialogue with investors in the spirit of partnership.
“There is always dialogue with the mines. We interface and talk to each other because mining companies are our partners. We are confident that mining companies will remain resolute in complying with tax rules,” he said.
Mr Chikwanda said Government is committed to ensuring that the tax system is not burdensome but conducive to tax compliance and beneficial to the country.
He said the government does not want to see any company – no matter how small – to collapse or close as this will result in the loss of jobs and consequently taxes.
Mr Chikwanda said the government will not “somersault” on its decisions but will always engage in dialogue with concerned parties.
“Government remains open to dialogue and will welcome progressive ideas on matters relating to development of the country inclusive of those pertaining to taxation. This will be within the spirit of partnership between investors and the government,” he said.
And some members of Parliament praised the government for relaxing VAT Rule 18.
Mafinga MP (MMD) Catherine Namugala said it is good that VAT Rule 18 has been relaxed but was quick to advise that Government clearly explains its tax policies.
Ikelenge MP (MMD) Elijah Muchima described the decision by Government as “brave”.
Katuba MP (UPND) Jonas Shakafuswa also praised the government for relaxing VAT Rule 18.
Meanwhile, Minister of Foreign Affairs Harry Kalaba told Parliament in a ministerial statement that Zambia’s profile to other countries is good.
Mr Kalaba also said President Lungu’s recent trips abroad are good for the country’s economy.
He said it is traditional for any new president to visit the African Union president and SADC chairman.
“President Lungu is selective in the trips he is undertaking. He has only gone to those which are beneficial for the country,” Mr Kalaba said.
Posted by Editor
on February 28, 2015. Filed under LATEST NEWS.
You can follow any responses to this entry through the RSS 2.0.
You can leave a response or trackback to this entry
G - L - O - R - Y
February 28, 2015 at 11:45 am
The bible is pure bullshit and there’s nothing holy about it. its time for brainwashed Christians to stop listening to all the lies and wake up to truth. u have all been brainwashed. good luck finding ur truth because religion is not it. its the greatest deception to ever hit this planet and its caused so many deaths and all u freaks still bow down to the evil biblical god.
major chileshe
February 28, 2015 at 1:15 pm
Wembwawe
New Educated Zambia
March 1, 2015 at 11:01 am
In as much as I agree with this sentiment, I wish you related it to the article at hand. You have every right to air your opinion out. However next time related it to the article.
major chileshe
February 28, 2015 at 1:15 pm
Umufyashi uyu kwena wa woyo,why did he evn implement it in tha first place?am pf to tha core bt this man has neva inspired me ayi
Judge Joe Bidden
February 28, 2015 at 1:25 pm
Ba Chileshe this is what we say everyday, Edgar has a big issue when it comes to decision making, why fli-flop like this? Besides he has little clue about how to drive the economy forward.
Judge Joe Bidden
February 28, 2015 at 1:33 pm
Edgar boasted on SABC interview said he doesnt care if investors go away from Zambia
Judge Joe Bidden
February 28, 2015 at 1:34 pm
So why has he now flip-flopped on that? Or its one of his typical poor decision making? He needs to be careful they way he acts – he is a president not a councilor.
vampiro
February 28, 2015 at 3:31 pm
I wish you were involved in the discussion they had with mine houses. Pf is a listening govt and they listern and act to what makes sense for the zambians. Just sit and think through the whole issue of tax. Mwaiche joe Biden politics is complex to yu guys with static minds and theories. Politics of 21 century operates at high dynamic speed to be easily comphrehended by persons who just focus on one thing.
Judge Joe Bidden
February 28, 2015 at 3:42 pm
“…they listen and act to what makes sense for the Zambians…”
Now you agree that its a careless and senseless Govt that acts foolishly unless someone makes sensible suggestions. Why did they implement an insensible idea in the first place and look foolish to investors?
New Educated Zambia
March 1, 2015 at 11:56 am
There is a difference between listening and making informed decision that are effective and accurate; and also just listening after you have made dull mistakes. Which seems to be the case with the PF. They only want to listen after messing up and being stubborn. Lack of vision is the cause of this temperamental behaviour. Vote UPND
vampiro
February 28, 2015 at 4:09 pm
Govt works for the people who put them there. If they wanted they can do away with investors who want to take away resources including not paying tax bring in others who can follow the law of tax.
observer
February 28, 2015 at 7:21 pm
make business predictable. changing business rules is ok provided its predictable. rules clearly set how they’ll change when this becomes that
Christopher
February 28, 2015 at 8:32 pm
Rule 18 was a very retrogressive tax law because it was prtactically untenable to get import documents from importing countries for vat refund purposes. Therefore, if the Rule has been realigned to eliminate this requirement, then this is a good move and should boost exports and this should have a positive impact on Govt revenue.
MCCM
February 28, 2015 at 10:30 pm
finshi ulelanda iwe phoney judge,those rules have not been made this year,the budget was not made under edgar.Are u confused?
titi
March 1, 2015 at 6:07 am
Is it not this same Chikwanda who brought down our Zambian economy to its knees during the Kaunda era?
New Educated Zambia
March 1, 2015 at 11:57 am
they say stupidity is doing the same thing more than once and expecting a different result. This is the case with the PF. Vote UPND to avoid same fossils making the same mistakes
juku1
March 1, 2015 at 7:00 am
yaba filiko tuleya.ifwe tulefwaya fye dolar ibwele pa three kwacha kwati magande achitile
Shimapuli
March 1, 2015 at 8:58 am
PF has shown that it is a caring government. No wonder Edgar will rule up to 2021. Viva ECL!
New Educated Zambia
March 1, 2015 at 10:57 am
Rather they have shown to be a clueless and indecisive government who do not realise that flip floping like this is even more detrimental to the economy of the country as it leads to uncertainty. Try and be objective for one in your life. Silly cadre
Shimapuli
March 1, 2015 at 1:36 pm
Iwe chikala UPND cadre. Just accept the reality that UPND shall never rule this country.At least not in the next 20 years.
New Educated Zambia
March 1, 2015 at 1:44 pm
The question is not whether UPND ever leads or not. I am ok staying in opposition if the current governments did what was right. What is point going to state house when you are clueless. For you in PF you are just happy that you in power but have no idea what you are doing. Silly cadre.Get out of that cave and face reality
New Educated Zambia
March 1, 2015 at 10:56 am
A party full of clueless indecisive chaps who clearly do not know what they are doing. This is what happens when you are visionless and a government of trial and error. This is in turn leads to uncertainty as most investors can not predict when the government will change policy due to internal political pressures. In the UPND we have a defined economic policy that will ensure predictable environments for investors and potential ones. Sound economic management will be one of the key cornerstones of our leadership Please refer to our manifesto which is widely available online. Vote UPND
godfrey mwale
March 1, 2015 at 11:23 am
finally they’ve come to their senses.arm twisting this & that my foot! it has to be a 50-50 thing.it’s the poor masses who would have suffered had this shit continued.way to go.at least my job is now secured.solwezi.
Barrick Employee
March 1, 2015 at 8:05 pm
Job security is vital, you look in both angle that will benefits both zambians & investors & also the job security of a miner,thanx for your concern for hearing our cry……viva EL live longer
shocks
March 1, 2015 at 9:09 pm
PF gvt is suffering from indecision. Its like everything is try & error method. This is really experimenting with the economy at its highest dullness!