Govt neglect of private sector stifling revenue
By Tony Nkhoma
TONSE Alliance spokesperson Sean Tembo has attributed the narrow tax base in the country to the continued lack of a conducive business environment for the private sector to grow and flourish.
Tembo said unlike other countries in the region, Zambia had never had a vibrant private sector since independence.
“Successive administrations have never appreciated the importance of a vibrant private sector and its potential contribution to the national tax pool,” he said.
Tembo said the government was choking the private sector through the lack of policy direction.
“Even the current administration, which spoke so vehemently about creating a conducive business environment when they were in opposition, has completely failed to do so,” he said.
In a statement seen by The Mast, Tembo said the UPND had no clue whatsoever as to what it would take to create a conducive business environment for the private sector to grow and thrive.
“Government cannot talk about creating a conducive business environment for the private sector when businesses that supply goods and services to the government [the largest customer in any economy] take three years to be paid. When you look at the national budgets from 2021 to 2025, you will note that the amount of domestic arrears has increased from about K18 billion in 2021 to about K95 billion at present. That’s a more than 400 per cent increase. Domestic arrears in the amount of money that the government owes various businesses that supply goods and services to it,” Tembo said.
He said the private sector could not thrive when government was failing to settle its obligations.
“Then you cannot surely expect the private sector to survive, let alone grow and thrive to be able to adequately contribute to the national tax pool,” Tembo said.
He said high tax rates were a hindrance to private sector participation in the economic growth of the country.
