Lo­cal man­u­fac­tur­ers cry for in­cen­tives

Daily Nation Newspaper - - BUSINESS AND CORPORATE WORLD - By BUSI­NESS RE­PORTER

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.

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