Extend 2pc income tax allowance to other sectors, says ZAM

THE proposed extension of the local content allowance at two percent rate for income tax purposes should be extended to sectors such as leather and leather products, textiles and soya beans value chains.

This is according to the Zambia Association of Manufacturers (ZAM) president Ashu Sagar who welcomed

Government’s proposal to extend the local content allowance at the rate of two percent for income tax purposes to encourage value addition to tomato, mango, pineapple and cassava.

Mr Sagar however said the industry looked forward to this measure being extended to sectors such as leather and leather products, textiles and garments, pharmaceuticals, and the soya beans value chains.

“Key to this is the reduction of the import bill and the capacitation of local firms to generate more revenue domestically.

“This is critical to creating employment in the midst of uncertainty and securing the livelihoods of the citizenry,” he said in a statement.

Mr Sagar said whilst ZAM observed positive interventions in certain sub sectors of the manufacturing sector, it was aware of challenges and opportunities existing in sectors such as textiles and garments sector, wood processing, beverages, metal and edible oils among others which were critical to the growth of industry.

He urged Government to further look at the dynamics in these industries as these were among those worst-hit during the Cobid-19 pandemic.

On the social spending part, Mr Sagar said ZAM noted a reduction in the overall budget for 2023 and a significant increase in the areas of education, health and economic affairs.