Govt urged to clear VAT refunds

BUUMBA CHIMBULU writes GOVERNMENT should accelerate payment to all businesses of their long outstanding Value Added Tax (VAT) refunds to protect them from the current adverse effects of Covid-19. The acceleration of VAT will help cushion the blow as they lose income and pay for non-working workers, says Zambia Chamber of Commerce and Industry (ZACCI) Vice President – Trade and Commerce, Sylvia Mwansa. Ms Mwansa said this proposal was among the measures suggested by ZACCI to the Ministry of Finance as it compiled the 2021 National Budget which will be presented this month on the 25th. She said ZACCI had engaged in pro-active dialogue making various policy submissions on business sustenance during and post Covid-19 to the Office of the Vice President. Ms Mwansa was speaking during her presentation on “The Role of Associations and Chambers in Post-Covid-19 Economic Recovery” during the second virtual meeting organized by the Policy Monitory and Research Centre (PMRC). “ZACCI has also engaged Ministry of Finance, Bank of Zambia, Ministry of Commerce, Trade and Industry, Ministry of Labour, Ministry of Higher Education, Ministry of Local Government, Ministry of Health, as well as statutory bodies such as National Pension Scheme Authority on various issues affecting businesses amidst Covid-19,” she said. Ms Mwansa said ZACCI had established regular channels of communication and close working relations with Government line ministries and agencies and the press. She also encouraged Government to further provide impetus to the agro-processing and manufacturing sector lower the excise taxes on all locally produced products by a factor of 25 to 50 percent from current rates. This, Ms Mwansa explained, would allow for the operational stimulus of the sector. She also suggested the need to bring down the Corporate Income Tax for value adding manufacturers from 35 to 15 percent. Ms Mwansa said this would allow for quicker reinvestment of the returns into the expansion of the sector. She also stressed that it was time for businesses to be innovative with the adverse effects brought about by the Covid-19. “Businesses need to introduce new systems and processes to increase productivity and efficiency in order to avoid disruptions. “This entails a critical analysis of the internal processes and systems and identify what works and what does not,” Ms Mwansa said. The Sun