Local manufacturers cry for incentives

VALUE addition will only be sustainable if local producers are given incentives to survive in the manufacturing sector and effectively compete in the region, former Agriculture permanent secretary Namukolo Mukutu has advised.

Mr. Mukutu who was in the wine processing industry lamented that he stopped production because incentives were not enough to support sustainable manufacturing

Speaking in an interview with the Daily Nation, Mr Mukutu said there was need for the government to distinguish between industrial and cottage industries and give each sector relevant policies.

“We failed to continue with wine processing due to double taxation. We were paying manufacturing licence every year, amounting to K 3,000 to ZRA, and for the same factory we paid K 1,500 to the council.

“We also paid excise duty at 46 per cent of the price of each wine sold. Thus if the cost of a bottle of wine was K 20.00, excise duty would have been K 9.20, thus making profit in wine was literally impossible,” he lamented.

Mr Mukutu said he opted out of wine manufacturing because of unfriendly policies and hoped there would be a review. “We just hope that government will in future aim to make Zambia a country that promotes value addition, distinguishing between industrial and cottage industries. This way the government will empower Zambians,” he said.

Mr Mukutu advised government to encourage citizens in coming up with unique ideas and processes to increase income generation in households. He lamented that in Zambia entrepreneurs were “punished” for coming up with innovative ideas while in most western countries such ideas were supported.