Govt should consider reducing corporate tax in 2016-ZACCI

GOVERNEMNT should consider reducing corporate tax in 2016 to help stimulate the economy, says the Zambia Chamber of Commerce and Industry (ZACCI) president Geoffrey Sakulanda.

Mr Sakulanda said once that was done, companies would be in a better position to re-invest the remaining money into their businesses.

Mr Sakulanda said in an interview that reducing corporate tax would allow companies to re-invest in their businesses and increase productivity.

“The appeal we are making to Government is that it should reduce corporate taxes, because if you reduce corporate taxes, it means companies will be left with more money to re-invest in their businesses.

“This would stimulate the economy back into activity, we should see an improvement,” he said.

He also said that ZACCI was positive that the Zambian economy in 2016 would pick up especially that copper prices have started gaining on the market.

“In 2016, I am getting the impression that copper prices will rise as they have begun to show a positive sign, if that continues, it means that we will have better prospective,’’ he said.

Mr Sakulanda said the power generation projects which would come on stream by mid-year would also boost the economy as it would lessen load shedding.

He explained that it was possible to end load shedding by mid- year if all power projects such as the Itezhi Tezhi and the Maamba Collieries came on stream.

“Many power projects will be coming on-board very shortly, the Maamba coal power plant will also becoming online and so we may see the end of load shedding of power by the mid-next year,” he said.

Meanwhile, Mr Sakulanda said 2015 started on a positive note with the exchange rate performing well.

“It started very well and everything was smoothly running, the exchange rate was good and the rand was okay not until the economy got affected by the global melt down,’’ he said.

Mr Sakulanda explained that the economy was going to be manageable until the problem of load shedding arose.

“2015 has been a tough year but the economy started at a positive note, the currency was performing very well but you know with the meltdown of the world economy it impacted negatively on the Zambian economy,” he said.

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