Chibamba Kanyama

By Brightwell Chabusha

Green Party Leader Peter Sinkamba says imposing a solidarity tax as a possible solution to raise funds towards repayment of the country’s debt is not sustainable.

A solidarity tax is a government-imposed tax that is levied in an attempt to provide funding towards theoretically unifying projects.

Recently, Economist Chibamba Kanyama said the only feasible option to stop Zambia’s debt situation from deteriorating further is for Zambians to come on board and offer support through a “solidarity tax”.

Mr Kanyama observed that Zambia’s debt default had caused anxiety among non-bondholders, adding that Zambians should come together to assist government in solving the problem by way of a solidarity tax, designed to raise funds to deal the country’s sovereign debt.

But Mr Sinkamba argues that the solidarity tax is not feasible because all taxes in Zambia are proposed or imposed through the national budget.

He notes that the budget process for 2021 has reached the completion stage at parliament as per the country’s Constitution.

Mr Sinkamba argues that Zambia already has the sinking fund which has been established through the Constitution as a vehicle for payment of debts among other associated costs.

He notes that there is unconstitutional utilization of public funds in Zambia.

Mr Sinkamba  said the situation has made it very difficult for people to have confidence in the systems and contributes towards debt repayment.

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2 COMMENTS

  1. Pliz stick to your lane coz govt indeed has a sinking fund (lol). Besides why insist to help govt when they have said they have funds and this is part of their grand strategy ?. Donate your terminal benefits but don’t force us. We believe the govt, all is “in control”. MoH has enough funds as can be seen from their “expenditure” that they even given pharmacies multimillion dollar contracts.

  2. This man is full of tuchawa!
    Please stick that suggestion in your behind!
    We are already overtaxed! We cannot afford to entertain more taxes especially when you have a reckless party stealing our tax money and stealing money they borrow in our Name and expect us to pay through higher taxes? Alexander Chikwanda who started the borrowing madness is enjoying himself because he knows it won’t be him to pay.
    Here is the deal.
    We need full disclosure of Zambia’s total debt. Without that, we’ll be doing guess work. Zambia is pushing hard for an IMF bailout but IMF won’t buy Zambia’s lies. IMF’s records on Zambia’s debt are at variance with GRZ official debt report. Honesty and Truthfulness is the missing ingredient on the part of GRZ and it’s difficult to get assistance with that attitude!
    We the people need the same transparency on our debt situation. First we need to separate debts that were accrued by Parliament and those that PF accrued without Parliament approval. PF should take care of the illegally accrued debt! Furthermore, we need to conduct a Forensic Audit on how the approved debt money was used.
    Finally, we need Structural Adjustment for Government in general starting with the Office of the President. When resources are thin, a responsible GRZ will downsize! Reduce the size of Cabinet, abolish irrelevant Ministries like Religious Ministry, fuse some ministries like those under Education and Agriculture, Abolish DC positions, reduce the size of the Civil Service, cut down the size of the Diplomatic missions.
    Before we even talk about introducing new taxes, we must see government commitment towards cross-cutting Cost Cutting and cost containment measures to release resources for more essential sectors! GRZ already has enough Revenue. It’s just this PF Financial Indiscipline that shows as if there’s not enough tax revenue! It’s time our GRZ lived within it’s means regardless which political party comes into power. As for PF, they have already shown their Fiscal indiscipline and must be shown the exit door. You cannot put new ideas in crooked minds. You can put new wine in old bottles and it is not wise for Zambians to expect miracles from a PF-led Administration beyond 2021. That will be like sewing a new cloth on an old rug!

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