The Center for Trade Policy and Development has urged the government to be cautious when coming up with new taxes so as not to affect foreign direct investment.

CTPD Economic Governance Officer Natalie Kaunda says Zambia should avoid having unstable tax policies as this can hinder foreign direct investment.

The CTPD Economic Governance Officer said this when she featured on Money FM Business Radio Program dubbed Power, Policy and Money aired every Monday and Thursday at 9hrs.

Mrs. Kaunda says it is possible for the government to have a stable mining tax system that will attract more investors to invest in the mining sector and any other viable sector.

She also notes that Zambia’s mineral royalties are high when compared to the region which she says is a good thing but must also not result in investors losing confidence in the government.

“Let us as a country have good policies that will attract investors to invest in the country and we shouldn’t scare or push away prospective investors with our laws,” she submitted.

Speaking on the same program, Zambia Tax Platform Coordinator Ibrahim Khamara says government should be careful in coming up with laws so as not to allow job losses for the local workers.

Mr. Khamara notes it is important that the government collects taxes more especially domestically, but that it must be cautious in creating a win-win situation.

“We have been advocating for domestic revenue collection which is sustainable and avoid getting debt in financing some of these major projects” he said.