K1.8bn mineral royalty collected in 2013

First Quantum Mineral
First Quantum Mineral

THE Government collected total mineral royalty of K1.8 billion in 2013, which was 8.4 per cent lower than projected.
In the year when the mines earned more than US$7 billion from the metal exports, the K1.8 billion mineral royalty was far below the K5.7 billion raised from the Pay As You Earn (PAYE) in the same period.
Generally, the lower-than-expected revenue and grants led to a wider deficit than initially projected.
The national Budget recorded total revenue and grants of K25.6 billion, lowered than the target of K26.3 billion.
Generally, the 2013 budget outturn was not in line with the projections, evidenced by lower-than-expected revenues and higher than planned expenditures.
According to the 2013 Annual Economic Report, the scenario was mainly attributed to underperformance on income tax and non-receipt of pledged support from some cooperating partners.
The domestic revenues accounted for 96 per cent of the total revenues, while grants accounted for four per cent representing 20.3 per cent and 0.8 per cent of Gross Domestic Product (GDP), respectively.
‘‘Total revenue and grants amounted to K25.6 billion representing 2.7 per cent below target, while expenditures at K33.8 billion were above target by 6.6 per cent. This resulted into an overall deficit of K8.2 billion representing 6.8 per cent of GDP,’’ partly reads the report.
The domestic revenues amounted to K24.5 billion, and were below target by 0.9 per cent largely
‘‘Collections from PAYE and other income related taxes such as Withholding Taxes at K5.7 billion and K1.3 billion were above target by 13.2 percent and 18.3 per cent, respectively.
‘‘Value Added Tax (VAT) collections at K7.3 billion were above target by 22.1 per cent largely on account of the enhanced enforcement mechanisms and audits,’’ further reads the report.
Collection of customs and excise duties at K4.2 billion were below target by 11.7 per cent mainly due to removal of customs duty on a wide range of mechanical and electrical machines.
On the non-tax revenue collections, the amount went up to K1.4 billion and was 19.8 per cent above the target.
During the year a total of K1 billion was received as grants against the target of K1.5 billion.


Times of Zambia