The Non-Governmental Organisations’ Coordinating Council (NGOCC) has appealed to government to rescind its decision on lifting tax exemptions for public benefit organisations (PBOs) through the implementation of Statutory Instrument number 103 of 2013.

NGOCC Executive Director Engwase Mwale said implementing SI 103 will negatively affect people at the grassroots because it will make it harder for the public benefit organisations to assist needy communities.

Ms. Mwale said the withdrawal of such tax incentives will push up capital costs for the organisations concerned and ultimately push up the cost of programme implementation.

The NGOCC Executive Director was speaking when she made a submission to the committee of delegated legislation at parliament building in Lusaka today. The committee was chaired by Namwala Member of Parliament Moono Lubezhi.

She said the withdrawal of tax exemptions for PBOs will impede service provision to the people at the grassroots level especially women and children.

“The withdrawal of tax exemptions for PBOs is not in public interest especially for a country like Zambia with high poverty levels that require concerted efforts. It is a given fact that PBOs have contributed substantially through their services,” Ms. Mwale said.

She said the resulting increase in the cost of operations for most PBOs with the implementation of SI 103 will definitely disadvantage the organisations and force some of them to either shut down completely or scale down their operations.

“And because programmes would be scaled down and some halted, this will negatively affect the charitable and humanitarian services being provided by some PBOs such as advocacy to end Gender Based Violence, HIV and AIDS prevention programmes as well as maternal health service provision,” Ms. Mwale explained.

Ms. Mwale said on a broader perspective, it must be recognised and accepted that PBOs were partners in development through complimentary efforts with government because they were taking basic services to communities which do not ordinarily receive government services.

She said ultimately, the poor and marginalised people in society would be the losers as some of the equipment such as motor vehicles, machinery and equipment were essential in service delivery of most of the non-state actors.

13 COMMENTS

LUAPULA PREMIER January 23, 2014 At 9:06 am

THAT IS AN ‘ORDER’
Mushota January 23, 2014 At 10:33 am

Even those of us, who have been in Diaspora and are helping your country

I send a lot of my old clothes, I send money atleast 4-5 times a year, I send my shoes which are hardly won, and when i buy products from Zambia they have VAT

Please remove VAT from people’s salaries

Thanks
- Mushota January 23, 2014 At 10:33 am
  
  OOOps there is no VAT on salaries, I meant goods
  
  Thanks
- Kanjimaano January 23, 2014 At 1:39 pm
  
  I think you don’t understand what VAT is all about.
- CARL January 23, 2014 At 5:20 pm
  
  @Mushota Nonsense! that’s not well rounded of you. try to think, even a little bit. i think it is good for you! you will see.
mwine wake January 23, 2014 At 11:23 am

Kwena Mushota uli chi susushi!
- cnp January 23, 2014 At 11:25 am
  
  Icisushi icha fuku fuku
BKB January 23, 2014 At 11:59 am

Bravo! Central Government for such a progressive move let this NGOs pay Duty and VAT to the central treasury and government will allocate these resources fairly to the needy instead of these NGOs accomplishing their ill motives.
- CARL January 23, 2014 At 5:15 pm
  
  @BKB who told you that govt is capable of allocating these resources fairly? the allocative efficiency of government has highly been compromised. it can no longer be trusted to provide for most welfare goods and services. as far as data is concerned NGOs are doing a far better job than government will ever do with its resources. you yourself are a beneficially to some of the services NGOs provide and there you are too busy talking nonsense!
zed samurai January 23, 2014 At 12:00 pm

I wonder what ACCA mushota passed. Please cut the silliness and grow up. Since when have salaries been Vat taxed?
Njalamimba Musonda January 23, 2014 At 12:15 pm

Just prepare your budgets and send to your financiers they will pay. By the way are your accounts audited and open to the public? We know of some NGO promoters who get items for personal use instead of giving it to the intended beneficiaries the poor.
abena chishinga January 23, 2014 At 12:19 pm

@Mushota
I know you live in the UK. Don’t waste time on doing several mini-jobs but reserve some time to be on top of your academics so that you assist your efforts in developing good analytical skills. all the time cilande lande fye!!!!
ukwalinsoke January 23, 2014 At 1:02 pm

THESE THIEVES SHOULD PAY EVERY SINGLE COIN REQUIRED FOR TAX PURPOSES.

SEE THEM IN TOWN THEY EVEN BOAST. BRAVO PF FOR STOPPING THE ROT.

WHO TOLD THEM THIS COUNTRY WILL DEVELOP BASED ON WHAT THEY RECEIVE

AND STEAL MOST OF IT.