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Saturday, December 3, 2022

Call for Tax- holidays ‘ illogical’- Action Aid

Economy Call for Tax- holidays ‘ illogical’- Action Aid

ActionAid Zambia Director Nalucha Ziba
ActionAid Zambia Director Nalucha Ziba

ActionAid Zambia says it is saddened with the remarks attributed to Zambia’s Ambassador to Germany Anthony Mukwita that potential Germany investors will enjoy a tax free break for the first five years , here.

In a statement made available to ZANIS today by ActionAid country Director Nalucha Ziba says the remarks attributed to Ambassador Mukwita are what she termed as ‘ illogical.”

Mr.Ziba stated recalled that during the 2018 budget presentation former Minister of Finance Felix Mutati announced that government has banned the 5-year income tax holidays that is facilitated through the Zambia Development Agency.

“In place of the tax holiday, government proposed to grant accelerated depreciation for capital expenditures by qualifying investments in priority sectors. We therefore, don’t understand what five (5) year tax breaks Ambassador Mukwita is referring to”, he said.

ActionAid is of the view that in a country like Zambia which is highly indebted, it is prudent that government relies more on tax revenue collection in a fair manner to raise more revenue and avoid relying on borrowing.

“Zambia cannot continue on a path of debt accumulation. The repayment of debts will adversely affect many Zambians, especially those living in poverty.

“For instance, if you look at the 2018 budget more revenue is going towards debt servicing than towards critical social sectors such as health which many Zambians rely upon. Currently, there is a shortage of critical essential drugs and medical equipment in most rural health centers and this is affecting many people who rely on public medical services.

“This is leading to increased inequality between those who have and those that do not have, ” he stressed.

The ActionAid country Director has advised government to look at other ways of collecting tax revenue citing adequately taxing the mines and strengthening tax compliance of the mining sector.

Recently, Ambassador Mukwita while addressing potential investors in Germany indicated that they would not pay taxes for investing in Zambia for the first five years.


  1. This is a result of poor or lack of coordination in government operations. It is as result of having leadership that is not engaged with real issues of governance but pre-occupied with personal gains!! We should do away with tax breaks, that is why we have only managed to attract Miners and Traders and no manufacturers despite our central location which is favorable to being a production and distribution hub!

    • One has to consider the possibility of these investors having cited Free Trade Zones … that too is a possibility but I don’t have all the details on this to personally contribute intelligently to this discuss hence the thought of FTZs.

      I await the details and the context in which those pronouncements were made.

  2. This is what happens when you have lazy corrupt kaponyas who appoint cadres to embassies like that jumpy silly boy Anthony Mukwita…its embarrassment and confusion!!

  3. The Ambassador needs to be disciplined for not reading minutes passed on to embassies and for not being in tune to parliament deliberations. This position requires people that are adequately educated, alert, and able to source timely policy changes in governance. He must be removed from his position for misleading prospective investors. Zero tolerance is the way to go for Zambia on this case.

  4. Who goes to invest in these so called developed is given a tax break? Yet it is a prerequisite being dangled in attracting investment! As if not enough they come and apply local conditions to indigenous employees while allowed to apply ‘expatriate’ conditions to personnel they import from home countries for equal jobs! What mentality is this when we get no rebates of any sort on their lending?

    • Ah, but the problem is, you can’t get anyone from those home countries to move to less developed nations if all you offer are conditions worse than they would get at home. And how many people with decades of experience in highly paying jobs can you find in a nation where those jobs are pretty much nonexistant? You talk about ‘equal jobs’… but if an investing company can get away with hiring a local for much less than he would have to pay someone he has to ask to move there without loosing out on the work quality done, don’t you think any company would choose the local worker and save money?

  5. DRC is changing everything. Reduced license from 35 to 25 years, increased loyalty tax from 5% to 10%. They even refused to attend a symposium on reduction of poverty in the country. They had enough of begging from the West and chosen a path of their own. We were told privitization would improve our economy, but 30 years down the line we seem to worse off than under KK’S socialism.

  6. @3 EYES. Great point you make. Foreign missions have become a place of appeasing political sympathizers. For heavens sake, appoint educated, well informed cadres. do not insult our intelligence.

  7. Ka ambassador ka ku Germany nimbwelenge saana…it is the appointment failure. I think kebange saana I saw the video clip in which he preached about tax vacations… his speech was characterized with exaggerated gestures, his arms, legs, neck and the head were all in pendulum swing talking nonsense.

  8. In a more serious country the Permanent Secretary Foreign Affairs would have by now called and asked the Ambassador to explain his uncalled for statements, a report would have been sent to the Minister for Foreign Affairs, Cabinet would have put in place the necessary protocols and the President would have sent him a letter to recall him….this is a blunder too large to be over looked…..

  9. Abena Ng’umbo-Luapula boy mwansekesha sana nembafu shakalipa. Ati Pendulum swing talking nonsense. Very good description of ka Mukwita.

  10. We keep telling these lazy corrupt rats in GRZ that shouting ” we have created an enabling environment for bussiness ” is not enough…..these PF are too lazy to do the work and create industries…..get this through your thick skulls…..no forigner will develop you manufacturing without the lead from government…

  11. The main problem is pf is only used of issuing tenders paid for by borrowed money…..they have no idea how to work and sweat for money.

    They are so used of splashing borrowed money that they think foreign investors will come flocking to Zambia because money can be picked in streets…..they do not know that they have to sacrifice and sweat with hard work to create industries to build the skill base , then you will see other foringe investors comming…….

    • Suppose an investor wants to come and open mulungushi textiles , how many trained machinists are there ? Mainly Only Congolese in markets sewing. By GRZ taking the lead in creating these industries , the skills shortage is identified and plunged…..only then will you see investors….

  12. That Mukwita is just a cadre. His dressing is always childish, he likes very slim ugly suits like a Kaponya celebrity from Kalingalinga. That aside, his talk to the Germany potential investors was embarrassing. He talked like a cadre on campaign in Kalingalinga. How do you take such a cadre to the powerful economy in Europe?

  13. I am an advocate of reduced or even zero corporate tax policy…….At a time when the unemployment level is this high, allowing people with money from outside to set up companies here in Zambia (FDI) and employing Zambians is a welcome thing.
    Zambia is not the only country looking for investors. Look at what USA has done by cutting taxes, that’s all about attracting investors. Tax holiday incentives come with conditions and firms with these breaks are audited for compliance….eg number of people employed and planned to employ, number of foreigners in the firm, total investment made….etc
    At the end of the day be it 5 years or more the Zambians employed benefit…they get to have access to loans and thus empowered to build houses , educate their children etc. This is the BIG…

  14. Those are indications that the guy is detached from the Country he presents. How can an Ambassador miss such important information like that one. This entails that he does not read about his own country, policies that his own country is implementing, shame mwee

  15. This is what you get when you appoint cadres in suits to these positions. Lets appoint career diplomats who understand the laws and policies of the country and avoid such embarrassment.

    It looks like cadres in foreign service are now making policy statement and basically proposing changes to our laws. The Ambassador in South Africa behaves like the Government spokesperson. I read that the Ministry of Foreign Affairs has issued a statement to correct and guide these misguided cadres. Like ZWARI says you have an Ambassador who does not understand the laws and policies of the country he is supposed to represent. The question is when is the appointing recalling him?

  16. These guys are an embarrassment to this country.The president needs to act and act now.If he does not,we citizens have a duty and right to protest against such an incompetent public officer.This is incompetence of the highest order and cannot be tolerated anywhere in the world.

  17. Disorganised , dysfunctional and disjointed government this is .They don’t know whether they are coming or going .They are only good at lining their pockets with tax payers money .

  18. Mukwita and Mwamba are journalists who never practiced freely so now they are diplomats they want to exercise the freedom of speech they were never given a chance to practice

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