The Bankers association of Zambia (BAZ) has noted that reduced tax rates on the Banking sector and other sectors of the economy can help stimulate economic activities in various sectors.

BAZ Chief Executive Officer Lenard Mwanza has disclosed that if the 35 percent corporate tax in Zambia can be reduced, it can pave way for further investments.

Reports indicate that “the Zambia Revenue Authority levies corporate tax at the rate of 35%.

However, income from the agricultural sector and non-traditional exports (all exports except copper and cobalt) is levied at 15%, while companies listed on the Lusaka Stock Exchange are taxed at the rate of 33%.”
Meanwhile Mr. Mwanza has bemoaned the delays in loan repayments by some borrowers.

He says this has increased the Nonperforming loans to 12.4 percent in in the Banking sector, which he says is above the 10 percent minimum threshold.