PRESS STATEMENT BY THE CHIEF GOVERNMENT SPOKESPERSON ON THE DECISIONS MADE BY CABINET AT THE 26TH CABINET MEETING HELD ON MONDAY, 14TH NOVEMBER, 2022.
The President of the Republic of Zambia, Mr. Hakainde Hichilema, called for the 26th Cabinet Meeting in the year 2022 at State House, on Monday, 14th November, 2022, to deliberate on policy and legislative matters in order to ensure that the delivery of services to the people is based on firm policy and legislative stance by Government including all the stakeholders in development.
The following were the decisions made:
1. National Anti-Money Laundering and Countering Terrorism and Proliferation Financing Policy.
Cabinet approved the National Anti-Money Laundering and Countering Terrorism and Proliferation Financing (AML/CTPF) Policy and its Implementation Plan.
The decision by Cabinet to introduce such a National Policy is as a result of the prevalence of vices such as corruption, tax evasion, drug trafficking, theft and fraud, which, if not controlled in a more coordinated manner by the Government, would negatively affect the economic, political and social stability of the country.
Further, the approval by Cabinet is premised on the fact that Zambia is a founder member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), and as such, it is important to comply with the standards set by the organisation for member countries to have National Anti-Money Laundering and Countering Terrorism and Proliferation Financing Policies.
Cabinet has a firm belief that the comprehensive implementation of this Policy will enhance coordination among various stakeholders to undertake targeted measures and allocate resources effectively in response to Money Laundering, Terrorism Financing and Proliferation Financing risks.
2. Legislation Matters:
During the Meeting, Cabinet also deliberated on the following six (6) legislation issues following the approval by Cabinet at its 20th Meeting, held on 16th September, 2022, of the 2023 National Budget, which is currently under consideration by Parliament.
(a) The Income Tax (Amendment) Bill, 2022.
Cabinet approved “The Income Tax (Amendment) Bill, 2022,” for publication and introduction in Parliament during the current sitting. The objective of this Bill is to amend the Income Tax Act so as to deal with all income tax-related issues as addressed in the 2023 National Budget.
The implementation of the Bill, once enacted, will, among other things, mitigate the cost of living for the people in the country; increase disposable income for salaried households; attract public-private partnerships in infrastructure investment such as roads; increase revenue to support the implementation of the 2023 National Budget; and ease the tax burden for certain sectors of the economy which will invariably result in greater tax compliance.
(b) The Customs and Excise (Amendment) Bill, 2022.
Cabinet also approved for publication and introduction in Parliament during the current sitting, “The Customs and Excise (Amendment) Bill, 2022.” The objectives of the Bill, among others, are to revise the rates of customs and excise duty payable on certain goods; revise the list of goods to be subject to surtax at importation; provide for the use of electronic fiscal devices in the administration of excise duty; and in order to promote a clean and health environment, facilitate the importation into the country, of electric motor vehicles and cycles.
(c) The Value Added Tax (Amendment) Bill, 2022.”
Cabinet also approved “The Value Added Tax (Amendment) Bill, 2022,” for publication and introduction in Parliament during the current sitting. The objective of this Bill is to amend the Value Added Tax Act, so as to revise the definition of “commercial property;” provide clarity on crediting of input tax and revise the penalty for tax evasion.
Cabinet has indicated that there is need to provide clarity on crediting of input tax and revise the penalty for tax evasion so as to stiffen the punishment in order to ensure greater tax compliance in the country. Further, it is envisaged that the implementation of the Bill will result in increased revenue mobilisation and greater tax compliance by stiffening the punishment for tax evasion.
(d) The Property Transfer Tax (Amendment) Bill, 2022.
Another Bill approved by Cabinet for publication and introduction in Parliament during the current sitting, is “The Property Transfer Tax (Amendment) Bill, 2022.” Like the other Bills deliberated upon by Cabinet, the Bill is intended to facilitate the smooth implementation of the 2023 National Budget.
(e) The Pension Scheme Regulation (Amendment) Bill, 2022.
Cabinet approved for publication and introduction in Parliament, “The Pension Scheme Regulation (Amendment) Bill, 2022,” whose objective is to amend the Pension Scheme Regulation Act, 1996, so as to provide for the approval of pension scheme rules by the Pensions and Insurance Authority.
Currently, the Act does not provide for the approval of pension scheme rules by the Pensions and Insurance Authority during the consideration of an application for registration to authorise an applicant to establish, manage and administer a pension scheme. Therefore, there is need to provide for the approval of pension scheme rules by the Pensions and Insurance Authority to enhance coordination going forward.
(f) The Mines and Minerals Development (Amendment) Bill, 2022.
In winding up debate for the day, Cabinet approved for publication and introduction in Parliament of the Bill entitled “The Mines and Minerals Development (Amendment) Bill, 2022.” The objective of this Bill is to amend the Mines and Minerals Development Act of 2015, so as to restructure the taxation of mineral royalty.
Currently, the mineral royalty regime, with respect to copper, does not support a conducive environment that attracts investment in the mining sector, therefore, there is need to restructure the mineral royalty regime with respect to copper.
Hon. Chushi Kasanda, MP
MINISTER OF INFORMATION AND MEDIA AND CHIEF GOVERNMENT SPOKESPERSON
17th November, 2022