NOMSA NKANA, Lusaka
ZAMBIA Chamber of Commerce and Industry (ZACCI) has proposed that Government reduces corporate tax from 35 percent to 25 percent in the 2018 national budget to make local goods competitive.
ZACCI president Michael Nyirenda said the measure has minimal loss of revenue in the short term but with long-term benefits to the country. Mr Nyirenda said this at the 2018 Consultative National Budget submissions last week.
“In the long term, the savings which will be made from the reduction in the corporate tax rate are likely to be re-invested in the economy and thus stimulating growth…[This will] result in more productive jobs being created,” he said.
Mr Nyirenda also said this will create more revenue for Government and will also give Zambia competitive advantage in the region in attracting foreign direct investment (FDI).
He said increased FDI means increased taxes and tax revenue to Government and also increased tax compliance.
ZACCI also proposed that Government exempts up to K30, 000 annual income of micro, small medium enterprises (MSMEs) from turnover tax to provide for capital allowance relief to small and medium enterprises (SMEs) currently taxed at three percent gross turnover tax.
Mr Nyirenda said this is because turnover tax punishes SMEs and treats them unfairly as business taxpayers, which is a breach of fairness and equity tax principles.
“It also raises the cost of capital as it is effectively a tax on capital and burdens SMEs when they should be supported.
“The relief given to SMEs will reduce the cost of doing business, free resources for reinvestment, minimise the burden of tax compliance and will lead to growth of SMEs with increased contribution to gross domestic product,” he said.
ZAMBIA Chamber of Commerce and Industry (ZACCI) has proposed that Government reduces corporate tax from 35 percent to 25 percent in the 2018 national budget to make local goods competitive.
ZACCI president Michael Nyirenda said the measure has minimal loss of revenue in the short term but with long-term benefits to the country. Mr Nyirenda said this at the 2018 Consultative National Budget submissions last week.
“In the long term, the savings which will be made from the reduction in the corporate tax rate are likely to be re-invested in the economy and thus stimulating growth…[This will] result in more productive jobs being created,” he said.
Mr Nyirenda also said this will create more revenue for Government and will also give Zambia competitive advantage in the region in attracting foreign direct investment (FDI).
He said increased FDI means increased taxes and tax revenue to Government and also increased tax compliance.
ZACCI also proposed that Government exempts up to K30, 000 annual income of micro, small medium enterprises (MSMEs) from turnover tax to provide for capital allowance relief to small and medium enterprises (SMEs) currently taxed at three percent gross turnover tax.
Mr Nyirenda said this is because turnover tax punishes SMEs and treats them unfairly as business taxpayers, which is a breach of fairness and equity tax principles.
“It also raises the cost of capital as it is effectively a tax on capital and burdens SMEs when they should be supported.
“The relief given to SMEs will reduce the cost of doing business, free resources for reinvestment, minimise the burden of tax compliance and will lead to growth of SMEs with increased contribution to gross domestic product,” he said.
RSS Feed
