By ZRA INTENT ON TAX RELIEF MINING INDUSTRY WANTS $1BN VAT REFUND
ments Standard Operating Procedures per Sector that should preserve health and safety actively study and of workers and customers in capture changes the context of Covid-1919 as
rates have not eased as fast investments would bring positive returns into in market demand restrictions are being lifted," and effectively as expected despite the economy. and take actions prompt- the report said. expansionary K112 million monetary Covid-19 policy relief stance package over On the strategy, Dr Kawesha said it was launched the ly to last reduce five by months. the negative Development im- Bank of important to focus on the private sector
The report recommended pact This caused could force by the Zambian Bank current of Zambia (BoZ) to the provision of credit guar- Zambia (DBZ) should be channelled players. keep Covid-19. the benchmark Kwacha is interest expected rate tomorrow at pensioners, and it is there in the statement I antee schemes to support towards investment projects countrywide “We have been informed that the strategy 9.25 This percent. is to according get some to support a sur- presented to parliament. MSMEs access to financial which will help stimulate the economy. will The impact breakdown credit provision, is there where new we credit are giving vey This report is as according on the the market to impact the Economics goes of flow pressure caused by Covid-19.
resources by Government
This is according to the Zambia Chamber instruments, preference,” he guarantee said. Government and warrantees has issued in the deep Association Covid-19 into the on of Zambia Small week has predomi- and (EAZ) profiled Me- National all arrears He explained that ZRA had continued to of Commerce capital a K8 billion market. Covid-19 bond whose proceeds Mr and Chilembo that its relief, Cooperating stressed understanding that it was Part- the critical current that
and dismantling and Industry them (ZACCI) with preference nantly Secretary, dium Zambia Enterprises on Mutisunge the Revenue back (SMEs) Zulu. of Authority corpo- in (ZRA) is provide
“As go the towards private needy sector, areas, the including subject of the Covid-19 amount ners. situation. was settled, indicating that these president, to The sectors Central Dr with Chabuka Bank high will economic tomorrow Kawesha. returns, announce rates Zambia. currently seeking granting local tax currency relief to qualified will
good payment corporate of retirees, governance contractors and and focused suppliers, were “The Zambian It position said businesses this of Government should that to had is be very fulfilled clear, the taxpayers Finance Dr new Kawesha benchmark Minister, of up said should to Bwalya 12 for DBZ months interest settle should Ng’andu, the rates through ensure over which has US$1 Tax that said. is it
According settle Value sustainable said to the Government report, business had operations put in championed billion Dr Ng’andu owed to the mining industry in Value operations which have have been the hit by potential reduced to liquidity contribute due to their our minister supplemented end of the made bargain, a statement with and the now instructing sup- desperately to Added Tax currently Time to Pay at 9.25 Agreements percent. (TPAs). which Added enterprises place obligations. should stimulate dismantle companies urgently the its economy. profiled to raise arrears. (VAT) port to look payment. of at commercial each case of banks. merit and ensure
In ZRA an should a Tax Commissioner interview, plan (VAT) to Mr for Zulu General, predicted Kingsley that the sustainable to the pandemic. growth, he said. needed ZRA adapt to the new market de- According for the is not economic to strangled the recovery report, as a result to have of investment, BoZ Chanda, He “Off was said course likely said improve his to private the leave organisation plan cash-flow sector the is in policy place. was and rate hopeful signing Everybody intensify at 9.25 that DBZ The State Board intends chairperson, to dismantle Pinalo arrears to 1, that He business said the mand to reduce the negative change after the Chifwanakeni, 500 The pandemic," retirees Bank of to Zambia the said tune models exponential of K500 should million rise in be while fully ex- the Covid-19. necessary private “Taxpayer lending, credibility, that inclusive the have Government approached fi- their percent TPAs knows relief investor with that package ensure some we risk have taxpayers affordable profile. would arrears reach of so interest between what out rates in we six terms have and in of the impact 12 done The sustainability months. market. is mining that we sector have and is accessibility profile owed the at least arrears for the more report that we said. infections also releasing had K170 resulted plored, million in a to significant before banks for considering the strain must us with nance address specific and outstanding requests online. of liabilities banking some kind and of make relief
by rapidly adjusting finance US$1 their have He Mr explained billion Chanda and to we impact as are explained unpaid that paying investment the refunds Medium that off. taxpayers The projects continue Term implementer The were around to report on payment encouraged businesses of third in party the layoffs country. arrears and and salary K140 cuts," million the provision where among applicable, for the others, payment according could of future to our also VAT laws, refunds. we
manufacturing plan and sales strategy. He streamline said various Zambia’s contractors. inflation was easing and He Mr indicated granted,” Chilembo that Mr indicated Chanda BoZ would that said. it also was accelerate difficult the accumulate, Refinance allowed knows country. how to Facility pay far says their we Zambia (MTLRF) have taxes gone Chamber in stimulus instalments in paying enterprises of package Mines out to towards For that reason, he
report said said. DBZ decided have provide timely financial sup- last Last headlined week, 15.8 former percent Finance as Minister, food prices the to Mr see interest Chanda how rate external said falling his budget mechanism organisation could which be was made giving (ZCM) life through because Dr line Kawesha Chief thrown the I do signed Executive not to was commercial sit speaking there Officer, every banks Sokwani in day Lusaka had to see not
For instance, the TPAs. report businesses and to reduce launch the costs covid-19 It relief further package stressed to the port for SMEs.
fell Katele with Kalumba a bumper urged harvest Government while the currency to give seemed available taxpayers clogged with who these had with approached remaining a slow actualisation unaddressed. ZRA payments of recently Chilembo. achieved who “We has do at intended been have the launch paid. a couple results of of the as disbursements DBZ relief that are said, some companies had taxpayers rapidly. It indicated mitigate that further en- strain. need for enterprises to have "Development of new
had preference seen stability to institutions following that foreign would exchange reinvest the terms. “A monetary repayment “We are measures not plan giving for the historic tax central waivers refunds bank per earlier (which say, voluntarily on Even “My TPAs dragged. job prior and is shifted to they the Covid-19, make strategic have sure been Mr the plan Chilembo paying resources for the according said, period are package have to man- terprises should market “More take interventions revealing, timely such Zambia as dollarisation has recorded of
a sound risk management to financial products in the the money to enhance liquidity in the economy. introduced. could what we mean are offsetting giving are amounts maybe payments against future terms 2020 these to available This, what to accumulating Mr we 2024. and Zulu agreed. then said, they unpaid “Normally entailed start debts implementing that this made banks ranges it had from ufacturing Personal Protec- measures to mining adverse preserve taxes deterioration cash sucking 45-55 of business percent of conditions supply
prepare to cushion the ad- medium and long-term, it Dr Kalumba said this move was one of the tax where “In liabilities, that there regard are amongst penalties with a other 25 percent and options) interests likelihood and we are difficult not tive six them,” “As had to 12 a for the private months benefit sector, but of certainly lowering to both raise through not investment, cost beyond of funding ZACCI 12
Equipment Dr Ng’andu companies (PPEs), said in ben- an interview. flow when confronted in the private with sector verse as output effects has of sharply future emer- is necessary to consider in-
pressure sure ways from the the economy market. could survive. we a waiving guarantee forecast and a of by 150-200 timely the way settlement basis penalties points of and rate refunds interest cut this needlessly through efitting months Recently, access unless both heightening the themselves our cheaper Zambia Private taxpayer their funds Sector investor continues from Alliance, the risk to BoZ. be in and the Zambia Revenue and Authority sudden crises. declined amid falling gencies. consumer spending novative financial products,
“We Zulu would said have Inflation some would positive be least foreign of the week going in not to revenue. forward, 7.25 percent would – provide 7.75 percent. certainty and profile, society. distress,” (ZRA) “Collateral indicated eroded he requirements said cash-flow that in an over interview. and K6 and made billion a tedious financial had "For so enterprises far and partial suffering shutdowns The of companies report said as this a was we are all looking for opportunities and BoZ’s linkages worries. in terms of those people owed the dramatically “However so as to it ease is provide more the likely cash-flow more that diver- the pressures BOZ on planning access been “Those are penal provisions in our Act as "Others Mr Chanda paid process an out have impossible however to has dismantle been delayed clarified exercise. speed- Value disbursement that Added from signing heavy Tax losses, funds down measures would with a be client directed and look at reducing at their cash the arrears flow
because the the monetary economy. pandemic had will the a result keep private of the wrong sector, benchmark doing and especially on interest the part rate on of at many the 9.25 of strategies result money He however of reinvesting Covid19. said despite back into sified financing channels (VAT). Mr Chilembo the Government said this during and the private launch of a momentum. ing-up TPAs was their a not Other business a normal banks trans- form have of shied business such away owed and decide to domestic that they suppliers pay their of goods due taxes and in
as telecommunica- policy “We “Let methodology us understand look at strategic being our role inflation areas as DBZ where based, of if
highlighted the importance percent Zambia’s importer, which so miners,” they we attach are he not said. a even 75 percent profiled while in our sector for MSMEs, as well as help- policy Dr Ng’andu brief can for champion a said post-Covid-19 Government to sustain on was business the aware Zambian of services. from formations for ZRA. the facility He stressed to as adapt they that already to these con- have were tion, far given cheap employee Covid-19 contributing instalments,” time-sharing could to Mr extraordinarily job Chanda creation, of risk said. management. poverty force the reduction focusing ing them finance expansionary in more operations, targets, For many on so those other Zambian according businesses, to the measures Mr law, Chilembo the such economy the importance dubbed growth of “A meeting opportunities Road to its Recovery.” obligation and such credit in special funding cases lines due that to the various 100 reasons basis points we “No dismantle mention these was made arrears, of VAT they arrears, are able sumer preferences development,” and com- he said. and stimulating committee and Mr employees’ overall Chanda to economic create also said latitude "Furthermore, development ZRA to was stimulate grating and there it is is the injecting emphasised, effective liquidity simply ways in the being and system paid at constantly,” lower the money Mr sustainable above especially as “Recognising paying monetary when out arrears. the policy taxpayers seriousness rate face cost cash of the flow MTLRF,” problem, however. to reinvest money into the economy into the Commissioner General has authority to waive
tax relief through The largest the measures sum that has which now were accrued petition He patterns that may creativity for consumer from country new this business and that demand. add we value. resolved need It would to apply come be better up the with for Govern- Zulu owed depending said. costs," to them on the would the report mitigation go a indicated. long that way taxpayers to ensuring the he challenges. said. “There President stressed is an of the allocation Zambia, importance Edgar for dismantling Chagwa of DBZ Lungu, over announced a period by of the some Finance years, Minister, is VAT refunds,” Bwalya he their provided,” Dr Kawesha continued he said. survival. partnering announced of “So arrears, in those with there in June peculiar companies is that also part cases, an allocation of whose the we do Covid for sit bond the said. package,” economy to professor pick up,” he Chifwanakeni said. said.
Ng’andu, where applicable to cushion cash
BUUMBA CHIMBULU INTEREST BUUMBA CHIMBULU THE GOVERNMENT
Bongohive is a technology and innovative hub which evolves to assist scalable start-ups by enhancing skills, accelerating growth, providing a forum for ideas exchange and reducing the barriers to entrepreneurship.
Mr Lindunda explained that large firms should view partnerships with start-ups as an opportunity to penetrate into new markets.
He was speaking during the Stanbic Bank Zambia Anakazi Banking online conversation which discussed how businesses can tap into local capabilities.
“Once you see startups growing and gaining momentum in the industry, as a corporate you should see that as an opportunity. If you can partner with them, you can get into new markets.
“A start-up will be more agile and they are on the ground and understand the context much better and that will help in creating credibility as a big corporate,” Mr Lindunda said.
Mr Lindunda however encouraged start-ups to strive to grow to a point that they were credible enough to provide a service to large corporates.
This, he said, would help to unlock their potential and value, thereby growing their businesses. He also observed that Zambia’s hound population provided an opportunity to unlock potential which could transform the country.
Meanwhile, Mr Lindunda said Bongohive has created 23 partnerships with different large corporates including Facebook and Amazon, among others meant on leveraging on technology.
Mr Lindunda said such partnerships had helped his organisation to provide quality service and help customers with innovations.