2020 NATIONAL BUDGET SHOULD FOCUS ON ECONOMIC STIMULATION
Written by Millennium on August 22, 2019
SUN BUSINESS REPORTER writes
THE Private Sector Development Association (PSDA) says it expects the 2020 national budget to focus on economic stimulation through enhanced private sector growth.
Association Chairperson Yusuf Dodia said there was need for government to put in place a deliberate measure that will see a larger allocation of the national budget going towards dismantling domestic debt, by clearing all its pending payments to government suppliers and constructors.
Mr Dodia said, that there was also need for the government to lower the cost of doing business in all the sectors of the Zambia’s economy, by lowering taxes and charges attached to setting up a business.
He also advised that in order to grow the economy, government through the national budget should shift the policy on monitoring export earns from being captured in foreign to local currency.
He noted that by so doing the country’s economic growth capacity will be recapitalized and improved for the benefit of its people.
And Zambia Chamber of Small and Medium Business Associations (ZCSMBA) chairperson Moto Ng’ambi has urged government to reduce all zero rate taxes on imported manufacturing and processing equipment in next year’s budget.
Mr N’gambi observed that Small and Medium Enterprises (SMEs) were currently facing challenges to access, or import manufacturing and processing equipment that enable them add value to their products, due to high taxes.
He explained that with the current economy, pressing emphasis on value addition on locally produced products, government should consider to reduce taxes when importing the equipment so that small business persons can have access.
Mr Ng’ambi further appealed to commercial banks to come up with products and services aimed at helping SMEs access cheaper loans or equipment that can be used in value addition.
Minister of Finance Bwalya Ng’andu will next month present the 2020 national budget to parliament.