Metro

World Bank warns Zambia of tax inefficiencies

Published

1 day ago

October 2, 2024

The World Bank has warned the Zambian government of its tax inefficiencies which it says are being sustained by a generous incentive regime and ongoing tax administration challenges.

In its Zambia Public Finance Review, the Bank highlighted that the country’s tax collection fell short of its potential, limiting the effectiveness of fiscal policy during economic downturns.

During the presentation of the report at the 2025 National Budget session which held at the Mulungushi International Conference Centre in Lusaka, World Bank Country Director, Nathan Belete, emphasized Zambia’s weak budget credibility, noting that budget execution for goods and public investment frequently deviates, but pointed out that there are widespread project implementation issues across various sectors.

“Zambia’s fiscal position has become vulnerable, driven by weak fiscal governance and underperforming public sector investments,” Belete said.

He also pointed out that underperforming State-Owned Enterprises (SOEs), coupled with weak oversight, have added to the nation’s debt burden by accruing significant losses and liabilities.

Belete further called for the expansion of the country’s tax base, particularly beyond mining, to enhance revenue potential and ensure sustained tax collection.

“With fiscal and debt pressures persisting and limited access to financing, Zambia must strengthen expenditure management and avoid past public investment mistakes that failed to drive economic growth and crowded out social spending,” Belete added.

He underscored the need to improve the administration of VAT and boost tax productivity while avoiding increases in VAT on basic consumption goods and recommended accelerating the rollout of the E-VAT system and using revenue windfalls to clear VAT refund arrears.

He also emphasized the need for stronger tax expenditure governance to minimise fiscal losses while maintaining economic competitiveness.

Related Topics:Featured Taxes World Bank Zambia

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Metro

Zambia: SP leader tells President Hichilema to allow Lungu contest 2026 presidency

Published

10 hours ago

October 3, 2024

Isaac Dachen

The leader of Zambia’s Socialist Party (SP), Dr Fred M’membe, has urged President Hakainde Hichilema to allow former President Edgar Lungu to contest the 2026 presidential elections as that will be a test of his popularity.

M’membe, who made the call in a statement issued in Lusaka on Thursday, said the most prudent course for the United Party for National Development (UPND) and Hichilema would be to allow Lungu to stand and work hard to defeat him in a free, fair, and peaceful election by delivering on the promises made to the Zambian people.

M’membe expressed concern that it appeared President Hichilema was determined to prevent Lungu’s name from appearing on the 2026 presidential ballot.

“The unbridled determination to block former President Lungu from contesting the 2026 elections is very dangerous and could lead to serious problems, including violations and the destruction of institutions,” M’membe said.

He argued that efforts to undermine the Patriotic Front (PF), Lungu’s political platform, had not yielded the desired results and as such, he should be allowed to test his weight at the polls.

“They have tried the destruction of PF to deny Mr. Lungu a platform for his 2026 presidential election bid, but it doesn’t seem to be working,” M’membe said.

M’membe also stated that the Constitutional Court should not be used as a tool to block Lungu’s candidacy, pointing out that the court’s decision on the matter was bound by the principle of res judicata, meaning that the case had already been decided.

“The hands of the Constitutional Court are tied by res judicata, and it is not well-placed to play this assassin role,” M’membe said.

He explained that while it might have been difficult for the court to decide Lungu’s eligibility for the 2021 elections, it would now be much easier for the court to reaffirm Lungu’s eligibility, as it had already ruled on the matter.

“A final decision was made by this court that Mr. Lungu was eligible, and it would be a gross injustice to reverse that decision.

“We see no compelling reason in this case. Simply disagreeing with the court’s decision is not sufficient grounds to overturn it,” M’membe concluded.

Metro

Nigeria to evacuate citizens from Lebanon as conflict with Israel escalates

Published

16 hours ago

October 3, 2024

Isaac Dachen

As the conflict between Israel and Iran continues to escalate, the Nigerian government has commenced arrangements to evacuate its citizens from Lebanon.

Special Assistant to the President, Bola Tinubu, on Social Media, Dada Olusegun, who made the disclosure in a post on X on Tuesday, advised Nigerians living in the war-torn middle east country to contact the Nigerian mission for documentations as a first step towards the evacuation.

“Alert! All Nigerians in Lebanon are expected to get in touch with the Nigerian mission for profiling and documentation and subsequent evacuation,” Dada wrote.

The move by the government follows an earlier call by the the Nigerians in Diaspora Commission (NIDCOM), urging Nigerians in Lebanon to consider leaving the country while commercial flights are still in operation.

In an advisory signed on Wednesday by the Director of Media, Public Relations and Protocols Unit of NiDCOM, Abdur-Rahman Balogun, the agency advised Nigerian citizens in Lebanon to consider leaving the country or to relocate to safer places over the attacks on Hezbollah and other areas in Lebanon by the Israeli military.

“Reports from the Nigerian community indicate that many citizens have already relocated from southern Lebanon and are now in safer areas,’ Balogun said in the advisory.

“NIDCOM emphasized the importance of staying vigilant and safe until a ceasefire is established.

“Fortunately, there have been no reports of injuries or accidents involving Nigerians thus far. Nigerians are also advised to maintain communication with the Nigerian Embassy in Lebanon for guidance on safety matters.

“The welfare and safety of Nigerians abroad remain a top priority for President Bola Ahmed Tinubu,” he added.

The urgency of the evacuation plans is coming following ballistic missiles launched at Israel by Iran on Tuesday evening in retaliation for the assassination of Hezbollah leaders, firing around 180 rockets.

The missile attacks have prompted threats of attacks by Israel on not only Iran but on Lebanon which has sent foreigners into panic mode.