Signs of a broke government, even excessive borrowing not solution

Finance Minister Alexander Chikwanda has signed Statutory Instrument number 103 revoking all tax incentives to Non Governmental Organisations and Public benefit organisations in a very clear sign that government is broke.

The SI 103 of 2013 means that all organisations like hospices that never used to pay customs duty for equipment will now need to pay customs duty.

Other civic organisations like World Vision and Care International will start paying tax to Zambia Revenue Authority for goods brought in the country intended to help the poor. The other implication is that organisations that have been offering free services may start charging for the services. Finance Spokesperson Chileshe Kandeta announced the development in a Press statement in Lusaka today.

Government has also targeted pirate taxis without necessarily legalizing the trade and Zambia Institute for Chartered Accountants (ZICA) Chief Executive Officer Hapenga Kabeta who featured on the Sunday interview TV programme on ZNBC TV has given free counsel that government first needs to legalise the trend before collecting tax from the pirate taxis. Early this week Zambia Revenue Authority (ZRA) Corporate Affairs Manager Mumbuna Kufekisa announced that ZRA would begin collecting tax from pirate (illegal) taxi drivers.

In spite of all these signs of government being broke, unnecessary expenditure like by elections, excessive cabinet, allowances paid to the battalion of police and intelligence officers sent Kasama to stop the Chitimukulu from occupying his palace and also now keeping vigil over former defence minister Geoffrey Mwamba take priority.

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