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Economist urges govt to provide tax incentives to businesses

• A lot of companies are failing to meet their short term financial needs.
• Government can come up with temporal measures by supporting them with tax incentives.
• Revenue that has been collected by government can be channeled to sectors like tourism and many others.

An Economist has called on government to consider introducing tax incentives for businesses that have been affected by Covid-19 in order for the Economic Recovery Plan to be on track.
Speaking in an interview with Money FM News, Mambo Phiri noted that the third wave of Covid-19 has affected a lot of companies in terms of operations and meeting their short term financial needs, therefore the need for government to provide short term measures.
Mr. Phiri said government can come up with short term tax measures in order to help sustain the affected businesses.
“We have a scenario where we have a lot of businesses which are being affected so we would assume that government can come up with temporal measures just to support them with maybe tax incentives so that the economic recovery plan can be on track because the third wave of Covid-19 has affected a lot of companies in terms of operations and meeting their short term financial needs. So it would be great if government can come up with short term tax measures in order to safeguard these businesses,” he suggested.
Meanwhile, Mr. Mambo advised government to channel part of the K40.1 billion revenue and grants collected between January and May 2021 to sectors that have been badly hit by the pandemic so as to provide short term financial stability.
“This is very important to our economic recovery because some of the sectors have been badly affected by Covid-19 for the past 2 years now. So we anticipate that some of the revenue can be channeled to sectors that have been hardly affected, so that those sectors can provide short term financial stability in their sectors. We propose that all those funds that have been collected by government can be channeled to sectors like tourism and other sectors,” he added.
Recently, Secretary to the Treasury Fredson Yamba announced that Zambia’s total revenue and grants amounted to K40.1 billion between January and May 2021, an impressive 43 percent above projection of K28.03 billion for the period.

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