By Nation Reporter
THE inclusion of copper concentrates on Value Added Tax (VAT) deferment schedule will free the much needed liquidity for importers of concentrates, says Enerst and Young (EY) Zambia partner, Patrick Mawire.
Mr Mawire emphasised that this was a welcome move especially that importers for copper concentrates were currently experiencing tight liquidity.
He was speaking during a post budget meeting organised by EY Zambia in Lusaka.
He also said the increase in customs duty from 5 percent to 15 percent on spare parts for various machinery and equipment would increase the cost of doing business especially for heavy industrial companies.
Mr Mawire said the organisation was of the view that any increase in duty on new parts should be accompanied by a reduction in duty on new machinery to encourage plant and factory renewals.
“The Finance Minister Felix Mutati has also introduced important duty on copper concentrates at the rate of 7.5 percent in the 2017 national budget.
“This new duty appears to conflict with the stated aim of encouraging local processing of concentrates through the just announced important Value Added Tax (VAT) deferment,” he said.
Meanwhile, Commerce Minister, Margaret Mwanakatwe said Government was depending on the private sector to actualise Zambia’s economic potential as it was the key driver of the economy.
Ms Mwanakatwe said the private sector had a role to play in offering solutions to the economic challenges that the country was experiencing.
“Zambia’s economy has the potential to grow, we need the private sector to lead the way in ensuring that the potential is actualised. This will enable us to reach a double digit GDP growth,” Ms Mwanakatwe said.
She said Government was going to work with the private sector in 2017 to ensure economic stability.
She further said the 2017 national budget was well-thought of and robust which aimed at promoting value addition for the country.
Ms Mwanakatwe explained that the 2017 national budget was designed to unlock resources in major sectors of the economy.