World Bank gives positive outlook on Zambia
By BUUMBA CHIMBULU
THE World Bank is confident of Zambia’s better economic outlook on condition that there is a strong policy re-oriantation focused on rebuilding budget credibility and fiscal sustainability.
And the bank has indicated that the distrust on the taxation policy which has been created between the mining sector and Government can be resolved and improve revenue collection through enhanced communication.
World Bank Zambia Country Economist, Samson Kwalingana, stressed that rebuilding budget credibility and fiscal sustainability was critical in supporting the possibility of Zambia’s better outlook.
“This includes the 2022 budget and the medium term fiscal framework which is critical to setting the macro path,” Dr Kwalingana said yesterday in Lusaka at the Global Markets and Treasury Client Breakfast organised by Atlas Mara bank.
Dr Kwalingana also suggested that enhanced communication between the mining sector and the Government could resolve the distrust between the two parties.
He stressed that “These players talk together, they are simple issues which can help improve tax revenue collection.”
He further pointed out the need for a stable tax regime as it was critical to attract possible investment.
Dr Kwalingana emphasised that stability on the fiscal regime was important for Zambia and for other natural resource economies.
“Zambia can have the highest or the lowest tax rates but it has to be stable. The most important elements of a fiscal regime for any natural resource economy is the assurance that it is stable.
“What that does is that companies can do their financials. So stability on the fiscal regime is very important for Zambia and for other natural resource economy,” he said.
He however mentioned that there was no optimal tax rate that could easily get in the world,saying it usually negotiated rate between the players.
At the same event, Atlas Mara Chief Executive Officer, ames Koni, emphasised the need to improve tax compliance.
Mr Koni explained that tax compliance was critical to improving revenue collection.
“Each percentage in the increase in compliance is critical to the revenue so the challenge is how to improve tax compliance. The problem is that they are only a few people paying tax.There are different ways why there is non compliance.
“Some of it is just that some want want to stay away and the other aspect is that others are not aware they need to pay tax,” he said.
World Bank gives positive outlook on Zambia
