The Small and Medium Enterprises (SMEs) in Kafue District have appealed to the Government to consider introducing tax waivers for newly established businesses to promote entrepreneurship and economic growth.
SMEs’ representative, Patricia Daka says the high tax burden faced by startups is limiting their ability to grow, expand operations, and create employment opportunities, especially for young people and women.
Speaking during a Zambia Revenue Authority sensitization meeting on understanding 2026 budget changes on domestic taxes and Customs, Ms Daka noted that newly established businesses are failing to sustain themselves due to tax burdens.
Ms Daka stated that ZRA should consider giving a tax relief of at least two years to SMEs to allow them to get established.
“As SMEs in Kafue we are making this submission to ZRA, consider giving us a tax waiver of 2 years to allow newly established businesses to grow,” Ms Daka said.
And Kafue Chamber of Commerce president, Reeves Kapalu highlighted the importance of tax compliance.
Mr Kapalu said taxation plays a crucial role in driving the development of the country, hence urging business owners to comply.
” As Kafue Chamber of Commerce, we continue to advocate for taxi compliance from our members. Taxation plays a crucial role in the development of the country,” said Mr Kapalu.
Mr Kapalu also echoed the proposal of introduction tax waiver for SMEs stating that many small businesses struggle to survive during their first years of operation due to heavy tax obligations and limited access to capital.
“Most new entrepreneurs spend their early months trying to stabilise operations, and immediate taxation makes it difficult for them to reinvest profits into growth. A temporary tax waiver would give them breathing space to stand on their feet,” He added.
He said the proposed tax waiver could apply to businesses within their first one to two years of registration, allowing them to build capacity before contributing to the tax base.
Mr Kapalu further commended the Government for the proposed tax measures of reducing the late turnover tax payment to 0.5 percent from five percent.
He thanked ZRA for Sensitising the Small and Medium enterprises on the proposed changes on domestic taxes and Customs in the 2026 budget.
