BAZ urges policies supporting individual savings

Wed, 24 Jan 2018 17:35:18 +0000

By MAILESI BANDA

FINANCIAL sector players have advised Government to develop policies that will encourage savings at individual and household levels to create funds for investment.

Bankers Association of Zambia chief executive officer Leonard Mwanza said creating supporting policies to enhance a saving among Zambians will help create more funds for banks to give to economic growth sectors. Mr. Mwanza said this when he made a submission to the Parliamentary Budget Committee on domestic resource mobilisation and the national budget. 

“We are of the view that developing policies which encourage savings at individual and household levels is an important aspect of not only increasing financial inclusion but a pool of funds from which banks can tap funds,” Mr. Mwanza said.

He said the funds realised from savings would in turn be channeled into growth sectors of the economy such as mining and agriculture, tourism as well as supporting Small and Medium -size Entrepreneurs.

He explained that supporting the growth of economic sectors will eventually lead to the number of taxpayers increasing, adding that this would in turn increase domestic revenues.

Mr. Mwanza noted that although there had been improvements in collecting revenue, Zambia still faced the challenge of a low tax base as most low income earners operate in the informal sector. 

“Citizens perception on the consistent misuse of funds and expenditure patterns affect the willingness to pay taxes and other revenues and unfortunately our country’s tax enforcement remains weak which makes it easy for tax payers to evade.

Mr. Mwanza said the BAZ is passionate about creating a cash-lite economy, adding that their support for the use of digital payments would promote more cash circulation thereby creating resilience.