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.