Reduce corporate tax, demands ZACCI

Thu, 08 Feb 2018 07:28:40 +0000

By BUUMBA CHIMBULU

THE Zambia Chamber of Commerce and Industry (ZACCI) has called on Government to reduce corporate tax to 25 percent from the current 35 percent as it is making the local goods uncompetitive on the market.

Speaking on behalf of ZACCI, member, Silvia Mwansa, observed that Zambia was one of the countries with high corporate taxes in Sub-Saharan Africa.

Ms. Mwansa said reducing corporate tax to 25 percent would give a breathing space to local manufactures to promote their goods.

“We continue submitting for Government to commence the process of reducing corporate tax from 35 percent to 25 percent at a rate of 2.5 percent per annum,

“The 35 percent corporate tax makes Zambian goods uncompetitive as compared to other goods coming from other countries. Zambia is one of the countries with high corporate taxes in Sub-Saharan Africa,” she said.

She was speaking recently in Lusaka at a public forum organised by the Ministry of Finance on the 2017 economic performance and the outlook for 2018.

While commending Government’s aspirations to continue the development of Multi-Facility Economic Zones and industrial parks, Ms. Mwansa called for more collaboration with the private sector.

“As the chamber, we hope to see in the near future a closer working relationship with Government that will incentivise the private sector to collectively set up industrial zones in corporation with Government,

“While we commend Governments efforts in industrialisation, we welcome a strategy to follow the private sector to play a larger role in developing the agenda with Governments’ support,” Ms. Mwansa said.

Ms. Mwansa also urged Government to keep dismantling arrears for its suppliers and contractors.

She explained that delayed payments of suppliers by Government contributed to higher Non-Performing loans, saying the entire banking industry was affected by unpaid Government contractors and suppliers.