ZAMEFA to boost output

METAL Fabricators of Zambia (ZAMEFA) will embark on an expansion project meant to boost production following Government’s decision to zero-rate copper cathodes.

ZAMEFA Chief Executive Officer, Roseta Chabala, said the company was hopeful that it would boost production next year with the zero-rating of copper cathodes.

Government in the 2020 National Budget zero- rated copper cathodes for Value Added Tax (VAT) to improve cash flow for local manufacturers that use the commodity as an input. interview in Lusaka that the company would have funds to refinance the business and support production if the Zambia Revenue Authority (ZRA) also liquidated some of the debt currently sitting on the company books.

“We are quite hopeful that next year with the zero rating of copper cathodes, we will drum up production, we will not worry much about VAT refunds because it was not be there. We will not be paying VAT so that helps.

“Since the debt will not be accumulating next year, it will be showing downward trends and that is if ZRA will liquidates some of that, making the company a little bit better off in terms of cash which can be used to refinance our business and support our expansion intended production,” she said.

Ms Chabala however said the company was still considering how to deal with duty free adding that the measure had a huge impact on a business such as ZAMEFA.

She said that the company would find a way on how to deal with the tax measure.

“2019 has basically been a rough year. This is the second year in roll that we have faced quite some challenges, most of it are attributed to Government debt and VAT issue have not pared us.

“This year it has been a little bit more than anticipated, we expected that it will be going down and maybe more collections in terms of refunds but we did not,” she said.