BoZ amendments mean well for country’s economy-Kalinde

The Bank of Zambia has reiterated that the recent amendments to its Act, to the statutory instrument and to the attendant regulations were not meant to re-introduce price or exchange controls in Zambia.

Bank of Zambia Assistant Director for Legal Services Leonard Kalinde disclosed that these amendments were intended to improve the management of monetary policy by curbing abuses in the economy and to enhance transparency in the management of foreign exchange and the cost of credit.

Dr. Kalinde said the Bank of Zambia Act was amended to empower the Central Bank to closely monitor balance of payment statistics and to empower it to regulate interest rates so as to lower the cost of borrowing.

He explained that the aim of the amendments was to authorize the Bank of Zambia to monitor balance of payment statistics in order to promote efficient operations of the foreign exchange system and to regulate interest rates and other charges by financial service providers in order to support price and financial system stability.

He was speaking in Lusaka today at the launch of a report by the Swedwatch, an independent research organisation that examines Swedish business relations in developing countries.

Meanwhile, Diakonia Zambia Acting Country Representative Sombo Chunda has urged government to come up with a law that compels multinational companies operating in Zambia to publish their tax policies and principles that guide companies’ global tax planning in order to curb tax evasion.

Ms. Chundu further urged government to review all tax agreements with developed countries and revise all agreements that are not beneficial to the country.

She noted that tax avoidance deprive the country of colossal sums of money that could develop the Zambia’s economy.

And Council of Churches in Zambia (CCZ) Secretary General Reverend Susan Matale noted during her key note address at the launch of the report that the issue of tax evasion was a corporate responsibility on one hand and an issue of good governance on other.

Rev. Matale said the issue of tax was a double edged sword that concerns those that must fulfil their corporate responsibility of paying tax genuinely and those who have the responsibility of ensuring that corporate bodies pay due tax in a transparent, fair and accountable manner.