PRESS STATEMENT Promoting Value Addition is Crucial in Enhancing Domestic Productive Capacity

Zambia’s Debt Restructuring Agreement What does it mean for Manufacturing? Join us on 11th July 2023 at 08:30hrs as we discuss what the debt restructuring agreement means for manufacturing. Speakers dissecting the topic and narrowing it to the manufacturing sector are:• Mr. Andrew Chibuye- PwC, Country Senior Partner • Mr. Isaac Ngoma- EAZ, President• Mr. Isaac Mwaipopo, CTPD, Executive Director• Dr. Herrick Mpuku, ZIPAR, Executive DirectorRegister to participate using the link: us06web.zoom.us/meeting/register/tZ0rc-uuqzwoH9z0mFk6IO5R50KXrgwjSaJH ...

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Zambia Tax Platform- ZTP

3 months ago

LONG-TERM FISCAL SUSTAINABILITY: SUPPLEMENTING ZAMBIA’S DEBT RESTRUCTURING EFFORTS WITH DOMESTIC RESOURCE MOBILIZATIONBy Ibrahim KamaraThe journey towards achieving fiscal sustainability in Zambia has been challenging. Each year, the government relies on borrowed funds to finance over a quarter of its budget. In recent times, the country has faced economic difficulties while grappling with a deteriorating public debt situation. As a result, the Kwacha has weakened, and a significant portion of resources has been allocated towards debt servicing. With a total debt stock of over $31 billion, Zambia's economy is under considerable strain. To address this, Zambia secured an International Monetary Fund (IMF) extended credit facility program, which includes a concessional loan of $1.3 billion and technical support in 2022, aimed at restoring fiscal consolidation. Additionally, the government has recently reached an agreement with official bilateral lenders to restructure around $6.3 billion of its external debt.However, to strengthen fiscal sustainability, Zambia will have to supplement debt management efforts with revenue generation beyond borrowing channels. Domestic resource mobilization, primarily through taxation, is the most preferred method for financing the national budget. Currently, Zambia's tax revenue collections are low, averaging only about 16 percent of the Gross Domestic Product (GDP). To improve tax revenue performance, the government must improve the following:1. Tax Compliance: Tax compliance remains a significant issue in Zambia, particularly in regard to Value Added Tax (VAT). Strengthening the tax administration can lead to improved compliance outcomes for VAT and other taxes. This may involve implementing robust systems for tax collection, improving taxpayer education and awareness, and increasing enforcement measures.2. Combating Tax Evasion: Tax evasion poses a major challenge for tax authorities. It can be committed by any taxpayer and undermines revenue collection efforts. Tax payer education and cross border cooperation are key areas that if improved can reduce tax payer propensity for evasion. 3. Economic Growth through Diversification: Economic growth and increased economic activity generally lead to improved tax revenues. Promoting sectors with untapped potential, such as manufacturing, tourism, and technology, can stimulate economic growth and generate higher tax revenues over the long term.ZTP CoordinatorTel: +260211264409Email: coordinator@zambiataxplatform.comWebsite: www.zambiataxplatform.comAddress: Plot 3823, Manda Hill Road, Olympia Park, Lusaka, Zambia. ...

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Latest News ZAMBIA’S TAX AMNESTY PROGRAM: A SUCCESSFUL INITIATIVE WITH ROOM FOR IMPROVEMENT. The Zambia Revenue Authority (ZRA) has been implementing a tax amnesty program since 1st October 2022. According to the Ministry of Finance and National Planning, this is to provide relief[...] Read more B...

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PRESS STATEMENT Promoting Value Addition is Crucial in Enhancing Domestic Productive Capacity

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