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.