Minister of Finance, Goodall Gondwe, on Thursday announced some changes to Value Added Tax (VAT) (Amendment) Bill, which he tabled in the House last week.
He told the House that government had decided to remove part of the bill which was talking about exemptions to mining projects.
“After I circulated the bill, there were reservations on some clauses. One of them was to do with mineral exploration. We consulted and we have decided to remove the clauses on which people expressed concern. We have removed a substantial part of the bill,” Gondwe said.
He added: “There were fears that we are going to overtax the poor and let free the rich. I believe with the changes, those fears will no longer be there.”
Apart from mining projects, the MPs also expressed concern over VAT on milk, honey and eggs.
The MPs protested the proposed amendments. They argued that such measures are going to affect people’s nutritional status.
But after debate, the MPs eventually passed the bill, with the changes Gondwe proposed.
MCP Spokesperson on Finance, Alexander Kusamba Dzonzi, lauded government for making changes to the bill.
“We are glad that after we raised the concerns on issues in the bill government has decided to remove clauses that were leaving mineral explorers free. In the state in which the bill was, it meant that the poor were being punished with taxes,” Dzonzi said.
He was, however, not happy with how government has treated the issue of milk.
“We are happy that VAT that was to be imposed on honey and eggs has been removed. The Minister has, however, insisted on having VAT on milk. We are also not happy that there will be VAT on exercise books manufactured locally. That will mean prices of those exercise books will go up,” Dzonzi said.
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