UPND VOTE AGAINST PRIVATE MEMBERS MOTION DISAPPOINTS HON SIMUMBA
By Oliver Chisenga
NAKONDE PF member of parliament Lukas Simumba says it is unfortunate that his motion urging the government to allow local authorities countrywide to retain 5 per cent of locally generated revenue for internal development did not pass.
In an interview after his private member’s motion failed in Parliament, Simumba said it was sad that UPND members of parliament politicised the gesture meant to benefit the nation.
Seconding the motion was Mambilima member of parliament Jean Chisenga.
The question was that the House urges the government to allow local authorities countrywide to retain at least five per cent of locally generated revenue for internal development.
Sikumba was the first member of parliament this session 13th National Assembly to raise a private member’s motion in the House.
Simumba said his private member’s motion was a national motion which required the support of all members of parliament regardless of the party they belonged to.
“In order to give context to the motion, Madam Speaker, let me begin by defining what ‘locally generated revenue’ means….locally generated revenue means all revenue collected by Zambia Revenue Authority through various taxes from a particular district, which also includes revenue collected by the National Rod Fund Agency through toll fees.
For instance, according to an article in the Zambia Daily Mail of 7th April, ZRA collects an average K200 million per month from Nakonde border post which is in my constituency,” he said.
“Similarly, it was reported by ZNBC that K1.4 million was collected by ZRA from Kazungula border post for the period of May to August 2021. Further, Madam Speaker, on Friday 15th October 2021, the acting Minister of Finance and National Planning in responding to a question asked by the honorable member for Mufumbwe informed this August House that ZRA collected K4.3 billion from Chirundu border post from January to August 2021.
It is in this vein that we are asking that the government allows local authorities countrywide to at least retain 5 per cent so that the districts where they come from can have its fair share of development.”
Simumba said through the motion, he was proposing a revenue sharing mechanism that would allow local authorities in the districts which house the revenue collecting points to be given 5 per cent of what was collected for the development of the area.
He said the proposal would ensure the district where there is a border post, mine and toll gate, among other revenue points, benefit from the money.
Simumba said he was of the view that the new sharing mechanism would spur accelerated rural and urban development.
Further, Simumba said the local government system in Zambia was provided for by the Constitution in Article 152 (1) which empowers local authorities to administer and oversee all projects and programmes in each district.
“The function of the local authorities as provided for in the Constitution are the construction and maintenance of local roads, street lighting, construction of markets, motor vehicle licensing and collections of levies and toll fees, among others.
To provide the service as mandated by the Constitution and various Acts of Parliament, local authorities depend on locally generated revenue, grants from the central government such as local government equalisation fund as well as Constituency Development Fund,” he said.
Simumba said inasmuch as local authorities generate revenue through “small levies” and charges and receive grants from central government, the allocations were not adequate to have a significant impact on development at district level, hence his proposal before Parliament.
“The House may wish to note that demands for service provision far outweigh resources the local authorities currently collect and those that are allocated to them by the central government. The financial challenges are worsening by the removal of local authorities’ functions such as motor vehicle licensing which is performed by the Road Transport and Safety Agency and collection of toll fees which is performed by the National Road Fund Agency,” he said.
“Madam Speaker, the ZRA collects an array of taxes which include company tax, withholding tax, export levy, import duty and value added tax and may others from different entities such as mining houses, tour operators, business houses and border posts and the revenue collected is remitted to the Treasury single account known as Control 99. The same applies to the revenue collected by the NRFA through toll fees.”
Simumba further said that it was regrettable that despite districts such as Nakonde, Chirundu and Kazungula contributing significantly to the national Treasury through the collection of revenue, there was very little tangible trickle-down effect on the welfare of the people of the said districts.
He noted that the three areas were lagging behind in infrastructure development and service provision.
Simumba noted with regret that Nakonde border post which boasts of contributing about K200 million to the Treasury per month had seen no tangible development.
Simumba’s motion however did not pass.
The motion was supported by PF members of parliament Christopher Shakafuswa (Mandevu), Francis Kapyanga (Mpika Central), Binwell Mpundu and Christopher Kang’ombe (Kamfinsa).
UPND members of parliament, including Warren Mwambazi (Bwana Mukubwa), Jamba Machila (Mwembeshi), Newton Samakai (Mwinilunga) and finance minister Situmbeko Musokotwane, opposed the motion.