By RUTH YAMBAYAMBA
THE Cotton Board of Zambia (CBZ) is elated with the five-year tax incentives given to local cotton producers and ginners and is hopeful that the rebates will boost cotton production.
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Sunduzwayo Banda, the chief executive officer of the CBZ is confident that the five-year removal of tax on profits for local cotton producers and ginners would improve prices and service provision to cotton farmers.
During the presentation of the 2024 national budget, Finance and National Planning Minister Dr. Situmbeko Musokotwane announced that as part of government’s drive to unlock the economic potential for the industry, it will provide incentives to revitalize the cotton industry value chain.
Dr. Musokotwane said government would provide a five-year tax holiday on profit for local producers of Cotton seed and a five-year tax holiday on profit from ginning of cotton.
The minister also disclosed that Government will provide a 10-year tax holiday on profit made from spinning of cotton and weaving of thread.
And Mr. Banda says the removal of taxes will improve production in the cotton industry and has commended government for having taken up the board initiative.
Mr. Banda said, the tax holiday will improve commodity prices which will trickle down to farmers.
He is happy that government has listened to industry players’ proposals to revitalize the sector, adding that a 10-year tax holiday on textile investments will increase investment and value addition.
He has encouraged investors to take advantage of the move to invest in the textile industry as this is critical to contribute to job creation and increase rural household income.
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