GOVT URGED TO CONSIDER EXTENDING INCENTIVES TO PROCESSING INDUSTRIES OPERATING IN VARIOUS MFEZ

By Chileshe Mwango

As receiving of submissions for the 2023 national budget from various stakeholders comes to a close today, manufacturers in the country have advised government to consider extending incentives to processing industries operating in the various Multi-Facility Economic Zones -MFEZ-.

The manufacturers observe that limiting incentives to companies in the MFEZ only is limiting the country’s private sector’s capacity to set up similar investments in other parts of the country which should result in economic development.

Speaking at the pre-budget breakfast meeting in Lusaka today, Zambia Association of Manufacturers -ZAM- president ASHU SAGAR has proposed a 14% Value Added Tax -VAT- in the 2023 national budget from the current 16% as

this will among other things reduce the cost of doing business and increase competition among themselves.

Mr. Sagar says manufacturers are also concerned with the failure by government to pay them their vat refunds when they did so to the mining sector.

Meanwhile, Mr. Sagar is further proposing that in an effort to reduce the cost of doing business in the country, government should remove excise duty on manufacturing companies saying they cannot be subjected to the same tax as retailers.

And speaking on behalf of Finance Minister Situmbeko Musokotwane, Accountant General Kennedy Musonda disclosed that there are more companies now receiving waivers as a way of facilitating increased production in the country.

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