The Zambia Tax Platform has called on the Ministry of Finance to increase budgetary allocation for dismantling of domestic arrears to not less than 40 percent of the total arrears with a view to improve investment into productive sectors.
In the 2020 national budget, the government has proposed to spend K2.3 billion toward the dismantling of domestic arrears.
But in a statement issued to Money FM, Platform Coordinator Ibrahim Kamara has described the amount as low considering that only 11 percent of the arrears will be settled by the end of 2020.
Mr. Kamara adds that the amount is not sufficient more especially that suppliers have been affected and their businesses have not recorded growth due to non-payments by government.
Domestic arrears have increased to K20.2 billion Kwacha in 2019 from K15.6 billion in 2018, translating into 29 percent rise.
Increase budgetary allocation for dismantling of domestic arrears.
