Economists fault Mgimwa’s budge

Dar es Salaam. Economists have identified major gaps in the 2013/14 budget, including upholding tax exemptions to big investors and the failure to address key matters in relation to transforming the country into a gas economy.

They said although some exemptions have been done away with, still big companies continue to enjoy tax holidays which have nothing to do with increasing tax base in terms of attracting more investors.

Speaking at the event organised by KPMG yesterday, Prof Humphrey Moshi, a senior lecturer of economics at the University of Dar es Salaam ,said fundamentally the revenue sources remain the same.

“The country could have the capacity to collect more revenue in case dealers in the natural resource sector were subjected to pay more taxes and have less exemptions,” said Prof Moshi.

Making comparative analysis for East African countries, Prof Moshi said that Kenya had the biggest tax base and that was why it was the least dependent on foreign aid.

“Kenya’s dependency on foreign aid is only five per cent, while Tanzania’s is over 30 per cent. There is a need to reduce further this dependency so that the country can have resilience against external shocks triggered by the volatile global economy,” said the learned economist.

Explaining on the exclusion of fiscal policies governing the running of oil and gas sector, he wondered why there was a hole in the 2013/14 government budget statement.

“I have not seen sound measures being taken to address preparations towards managing a gas economy,” he said.

He also criticised the projection of attaining single digit inflation based on Consumer Price Index (CPI), which he said it had nothing to do to address inflation at household level budgets.

“It does not reflect the real picture at household level. The good indicator is food inflation, but again food inflation depends on the vagaries of weather. When there is good rain and good harvest inflation comes down and vice versa,” he said.

For his part, KPMG Tax director David Gachewa seconded the arguments saying fundamentally the revenue sources were still the same, proof that the country still maintains a narrow tax base.

“In the past, promises to widen tax base were made, but this is yet to be translated into action. Kenya has a stronger tax base than Tanzania. We have to emulate them,” Mr Gachewa said.

Read More

Panic as deadly blast rocks Arusha again

The scene where yesterday explosion occurred a few minutes before the closing of the Chadema campaign meeting. Photo IStaff photographer

 

Arusha. Two people died, and several were injured in Arusha yesterday, in the wake of a bomb blast at Kaloleni playground, venue of a Chadema campaign meeting ahead of councillors’ by-elections scheduled for today.

Regional police commander Liberatus Sabas spoke of the casualties being a man and a woman, but an additional information indicates that Mount Meru Hospital had received the body of a child.

The facility’s medical officer in charge, Frida Mukiti, also reported that several injured people were being treated there
.

RPC Sabas also explained that injured persons were spread over many hospitals.

According to eyewitnesses, a bomb was hurled on the spot where senior leaders were seated, including the major speakers, national chairman Freeman Mbowe and Arusha MP Godbless Lema.

The attack took place shortly before 6 pm, only minutes before the rally ended. Last month, a bomb attack occurred at a Catholic church at Olasiti suburb, shortly before its inauguration, killing three people and injuring scores.

A motorbike taxi (bodaboda) operator, Victor Ambrose Calist, 20, has since appeared in court to answer charges of murder and attempted murder.

By the time of going to press, no arrests had been made.

Against the backdrop of the by-elections in Elerai, Kimandolu, Kaloleni and Themi wards, is the decision by the top Catholic leadership to strip former councillors who were elected in 2010 of their membership.

The electoral contest is billed to be fierce between the ruling CCM and Chadema, the leading Opposition party, as have been previous ones at levels ranging from the grassroots to the presidency.

Before the incident, the newly-appointed city director Siporra Liana, had said that all preparations had been finalized for the polls, assuring residents of Arusha there would be adequate security to ensure safe and peaceful voting.

“They were just descending from the vehicle which they used to address the people. No sooner had they reached the ground, there was a blast”, one eye witness who refused to be quoted by name said

Read More

Zanu-PF heavyweights to stand in Matabeleland

Dr Sikhanyiso Ndlovu

Stanford Chiwanga and Vusumuzi Dube Sunday News Reporters
ZANU-PF politburo member Dr Sikhanyiso Ndlovu set the tone yesterday for what is expected to be a bitter fight against MDC-T for the council and parliamentary seats in Matabeleland region when he said Zanu-PF would fight to the bitter end to win back the region, as it emerged that the party’s heavyweights who were defeated in 2008 elections submitted their CVs and application letters to contest in the party’s primary elections.
The primary elections are scheduled for 24 June.
Dr Ndlovu said Zanu-PF members from the Mpopoma/Pelandaba constituency had asked him to submit his papers and he had done so as he could not turn down the opportunity to contest for the House of Assembly seat.
“Past results don’t count, just because we lost in the past does not mean automatically we will lose this year. If the MDC thinks the race is over before it has even started then they are mistaken because we are going to fight until the bitter end,” he said.
Retired Colonel Tshinga Dube also confirmed that he had thrown his hat in the ring for the Makokoba constituency. He said he was confident that his submission would be accepted by Zanu-PF’s national election directorate.
Retired Colonel Dube said he was “determined than ever” to represent the party for the Makokoba seat.
“These elections are for the future of Zimbabwe and everyone must give what it takes to ensure that Zanu-PF wins and President Mugabe is President. I am determined than ever because the elections will determine the future of this country. We must all pull up our socks. I don’t know who is going to challenge me but it will be interesting,” he said.
Zanu-PF Bulawayo province deputy chairperson Cde Killian Sibanda is reported to have tendered his application letter for the Nkulumane constituency House of Assembly seat. The former deputy mayor of Bulawayo Cde David Ndlovu is also vying for the Nkulumane constituency.
Politburo member Cde Joshua Malinga refused to reveal where he will stand but sources in the party said he had submitted his CV and application letter. 
Zanu-PF Central Committee member Cde Godfrey Malaba is said to have submitted his papers to contest in the primary elections for the Pumula constituency.
Cde Nacissio Makhulumo is rumoured to have put forward his name for the Bulawayo East constituency.
While it was difficult to get the names of the female candidates who will contest for the six senate seats reserved for women, Sunday News has it on good authority that Cde Esnath Moyo will stand for the Nkulumane seat.
The Governor and Resident Minister for Bulawayo Province Cde Cain Mathema revealed that he was going to contest the primaries for the right to stand for the Tsholotsho South constituency. He is set to battle it out with the son to the late Vice President John Landa Nkomo, Cde Jabulani Nkomo, who also submitted his papers for the same constituency.
In Nkayi North, Small and Medium Scale Enterprises Minister; Cde Sithembiso Nyoni, is set to stand unopposed while the vacant Nkayi South constituency had four applications that reportedly include former Cowdray Park councillor, Cde Stars Mathe and Councillor Jabulani Manqonda Ncube, who recently defected from the Professor Welshman Ncube-led MDC.
Matabeleland North provincial chairperson, Cde Richard Moyo said they were expecting all the applications to be submitted to their provincial offices in Lupane today where they will then have a comprehensive list of everyone who has applied.
In Matabeleland South, Cde Andrew Langa, who is also the provincial chairperson said the provincial elections directorate was expected to scrutinise all the applications today. He commended party members for their exemplary behaviour during yesterday’s process.
Meanwhile Zanu-PF national chairperson Ambassador Simon Khaya Moyo revealed that due to the overwhelmingly number of aspirants who were submitting CVs and application letters, he had instructed all provinces to continue receiving submissions deep into the night.
“The whole process has been smooth sailing across the country except for a bit of constraints in terms of time because the submissions were supposed to have been completed by 4pm. I had to instruct all provinces not to close because there were quite a number of aspiring candidates who were submitting their names,” said Ambassador Moyo.
Asked if he had submitted his name to contest in the primary elections, Ambassador Moyo said it would be known by Wednesday whether he would contest or not.
In Harare, the meetings were held without incident and some of the prominent persons who submitted their CV’s include Zimbabwe Mining Development Corporation chairman and lawyer Dr Goodwills Masimirembwa,
The chairman of the Zanu-PF Harare province, Cde Amos Midzi, told our Harare Bureau that the submissions were done in a calm and orderly manner.
“The process went on very well. Aspiring candidates submitted their CVs in accordance with the party guidelines,” Cde Midzi said.
According to Cde Midzi, the process was done in Harare’s six administrative districts.
“With the conclusion of the submission process, we are now focusing on the vetting process which will be on tomorrow (today). Like I said before, the process was done in a calm way since the aspiring candidates consistently focused on the business of the day.
Provincial electorate directorates will today sit and vet the aspiring candidates.
The provincial electorate directorates will then submit the names of the aspiring candidates to the national elections directorate.
Those aspiring candidates that will meet the national elections directorate criteria will then participate in the party’s primary elections slated for for June 24 ahead of harmonised elections set for July 31.
Irene Musarurwa daughter to former Sunday Mail editor Willie Musarurwa and former Sunningdale legislator Mr Gabriel Chaibva are eying Sunningdale constituency.
Speaking during the submission process for the Mabvuku/Tafara constituency, Cde Right Morris Banda, a member of the party’s central committee, who was supervising the Mabvuku/Tafara submission process, said the revolutionary party was not going to impose candidates.
“As you have all witnessed, the selection process was done in a fair and transparent manner. As a party, we are not going to impose any candidates,” Cde Banda said.
Among the candidates that submitted their CVs to represent Zanu-PF in the House of Assembly were the Zimbabwe Minerals Marketing Board chairman, Cde Goodwills Masimirembwa.
Cde Robert Martin Gumbura, a pastor with the End Time Messages Church in Harare, also threw his hat in the ring.
Cde Gumbura is son to the sitting Epworth, Mabvuku and Tafara senator, Cde Livia Gumbura.
In Mashonaland East celebrated lawyer Mr Jonathan Samkange threw his hat in the ring for the House of Assembly seat in Mudzi.
In Manicaland Province, four aspiring candidates submitted their CV’s eyeing a parliamentarian seat for Mutare Central constituency. Over 40 aspiring councillors showed their interest in participating for post in the local council.

Read More