ZACCI wants stable tax regime

Sat, 22 Jul 2017 10:19:38 +0000

By MAILESI BANDA

GOVERNMENT should have a consistent tax regime so as to encourage the private sector plan and invest into the economy, Zambia Chamber of Commerce and Industry (ZACCI) president Michael Nyirenda has said.

Mr. Nyirenda said the country’s economic development depends on a  consistent tax regime, adding that it was difficult for investors to invest in a country when the tax regime was inconsistent.

Speaking when he made a presentation on ZACCI’s expectations of the 2018 national budget, Mr Nyirenda said Government should be consistent in the implementation of policies especially those that bordered on business development.

He said the concern of ZACCI was to encourage business growth and economic development.

“When there is consistency in the tax regime, then it is a good environment for the business community to plan and we can all contribute to the growth of the economy. We therefore urge the government to cooperate with the private sector and encourage them contribute to economic growth,” he said

He submitted that Government should consider reducing the 35 percent corporate tax to suit those in the region.

He also proposed an exemption status for Small and Medium Entrepreneurs with an annual income of K30 million, adding that the current three percent being charged to the sector was not promoting growth.

“We want to see the SME sector grow and become big businesses and we know that this is only possible if the sector is protected. We propose that Government introduces a tax holiday for SMEs of up two years in key priority sectors to do with value addition,” he said.

He said ZACCI expected the government to maintain a single digit inflation rate, reduce external borrowing and maintain economic stability for the business sector to flourish.