Lower taxes possible in Zambia – EAZ

Our own citizens are busy sabotaging the economy, fortunately, some of us are 100 steps ahead. In a year’s time, macroeconomic fundamentals will strengthen and government will relax certain taxes - Dr Haabazoka.

MACROECONOMIC fundamentals for Zambia will strengthen in the next one year which will necessitate government to relax certain taxes, says Economics Association of Zambia EAZ president Lubinda Haabazoka has said. Dr. Haabazoka said Zambia’s problems were all solvable if only some people stopped posting fake information and concentrated on an all-inclusive and integrated approach towards national economic development. He said it was worrying that Zambians themselves were busy sabotaging the economy instead of rallying behind the government and contributing to national development. “Our own citizens are busy sabotaging the economy, fortunately, some of us are 100 steps ahead. In a year’s time, macroeconomic fundamentals will strengthen and Government will relax certain taxes.” Dr. Haabazoka said. And Dr. Haabazoka said copper prices within the period were also expected to increase thereby, maintaining a strong Kwacha. He said the association was of the view that the increase in taxes by Government was as a result of the inability to close all leakages in VAT to collect maximum revenue from other sectors of the economy including the mining. Dr. Haabazoka indicated that only three countries in Southern Africa, South Africa, Botswana and Namibia stood above Zambia while, Malawi was a village when compared to Lusaka because Lilongwe lacked investment in infrastructure. “With increased efficiency in tax collection and foreign exchange inflows from the mining sector , we can see a situation where we can maintain a strong Kwacha and going forward depending on Copper prices which would facilitate Government reducing on certain taxes,” he said. Dr. Haabazoka said he was confident that the 2019 budget put in measures to ensure that forex in the mining sector flowed back into the local economy. He said with increased tax collection as well as foreign exchange inflows from the mines, that would help strengthen macroeconomic fundamentals.