Govt called on broaden tax base in review of anticipated reduction in EU aid inflows

AN ECONOMIST PROFESSOR OLIVER SAASA HAS CALLED ON GOVERNMENT TO ADDRESS THE ANTICIPATED LOW LEVELS OF AID INFLOWS FROM THE DONOR COMMUNITY.

THE OUTGOING EUROPEAN UNION HEAD OF DELEGATION DR DEREK FEE SAID LAST WEEK THAT THE EURO ZONE FINANCIAL CRISIS WILL ADVERSELY AFFECT THE FLOW OF DEVELOPMENT AID TO ZAMBIA AND OTHER DEVELOPING COUNTRIES NEXT YEAR.

AND DR. FEE SAID THE RECENT REVELATIONS OF ALLEGED CORRUPT ACTIVITIES IN THE ROAD AND HEALTH SECTORS GREATLY AFFECTED THE CONFIDENCE OF DONORS IN 2010.

HE EXPLAINED THAT THE EUROPEAN UNION DECIDED TO SUPPORT AND IMPROVE PUBLIC FINANCE MANAGEMENT SYSTEMS IN GOVERNMENT AS A MEANS TO ADDRESS THE PROBLEM.

BUT SPEAKING IN AN INTERVIEW WITH RADIO PHOENIX PROFESSOR SAASA SAID THERE IS NEED FOR GOVERNMENT TO BROADEN ITS REVENUE BASE IN PROPORTION TO THE ANTICIPATED REDUCTION IN AID INFLOWS.

HE EXPLAINED THAT THE GLOBAL RECESSION HAS NOT WEANED OFF IN EUROPE HENCE IMPACTING NEGATIVELY ON THEIR ECONOMIES AND CONSEQUENTLY THOSE DEPENDENT ON THEM.

PROFESSOR SAASA SAID HOW MINES ARE TAXED HAS TO BE REVIEWED AS WELL AS THE DEVELOPMENT AGREEMENTS SO THAT THE REVENUE THAT GOVERNMENT GET FROM ITS CAN BE INCREASED.

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