Magande clarifies tax regime

The Daily Mail and The Post both report on Finance Minister Magande's comments to Parliament on Wednesday evening during the second reasing of the Income Tax, Customs and Excise, and Value Added Tax amendment bills. All three bills passed the second reading, reflecting widespread Parliamentary support for the proposed reforms.

Magande clarified how windfall and variable tax would be implemented. “It is our intention that when (copper and other minerals’) prices are high, the windfall tax will be attractive to ensure more revenue…the two taxes will not apply at the same time.”

The Customs and Excise (amendment) Bill also introduces a 15 per cent levy on both copper and cotton seed exports to encourage local value addition and job creation.

Parliamentary Expanded Committee on Estimates chairperson, Godfrey Beene welcomed the reforms, and urged their immediate implementation but said his members were concerned about the utilisation of the anticipated income from the mining sector, especially since it was not provided for in the 2008 budget. Mr Beene urged the government to consult relevant stakeholders, including the National Assembly, on the utilisation of the financial resources.