Fri, 26 Jan 2018 14:42:37 +0000
By BUUMBA CHIMBULU
THE private sector has called on Government to introduce tax relief for the ‘Buy Zambia’ campaign as a way of promoting local products.
According to the Private Sector Development Association (PSDA), introducing tax relief for the campaign would promote Micro, Small and Medium Enterprises (MSMEs) who currently had challenges to sell their products.
PSDA chairperson, Yusuf Dodia, said such an intervention would act as a mechanism to promote local products as well as supporting the local business.
“Government can make a policy to buy from MSMEs before considering the large corporate or foreign suppliers for the sector to contribute to the national development.
“Government can also introduce tax reliefs for the ‘Buy Zambia ‘ campaign where buying locally produced goods directly impacts in the purchaser’s tax dues to the Zambia Revenue Authority,” Mr. Dodia said.
He was speaking yesterday when he appeared before the Parliamentary Committee on National Economy, Trade and Labour Matters forcing on MSMEs.
Mr. Dodia also said since access to finance had remained a challenge, Government could put in place through the Bank of Zambia regulations to compel commercial banks to allocate a certain percentage of their loan portfolio to MSMEs in a strategic move to mainstream them as credible borrowers.
He observed that many MSMEs were collapsing within six to twelve months of being in business due to lack of access to finance.
He said most MSMEs operated on a minimal capital and that as a result, they tend to employ the basic of tools and hardware.
Mr. Dodia said access to finance and skills development were all useful mechanisms that would empower MSMEs to consider regional trade as a mechanism for growth and better profitability.
