An Economist has cautioned the government not to harm the economy even as it collects revenue from tax payers.
Yusuf Dodia says 60 percent of the national budget is mobilized domestically and hence the need to ensure that the government does not harm the economy.
Mr. Dodia says the economy should be a private sector led driven one and that the government should just provide policy guidance.
He was speaking when he featured on Money FM Business Radio’s Money Watch Programme that airs weekdays at 17hrs.
He said whatever the government does in terms of providing policy direction, it should not kill the economy.
And Mr. Dodia says it is good that there will be no Sales Tax for exports saying this will promote Zambia’s exports.
Mr. Dodia has further observed the need for the government through the Ministry of Finance to provide further details of the products that are exempted under the exports.
The Ministry of Finance said exports will be exempt from the Sales Tax in order to make them competitive and earn the country foreign exchange.
Speaking during the Stakeholders’ meeting on Sales Tax in Lusaka, Finance Minister Margaret Mwanakatwe said government is convinced that from the tax administration point of view, it will collect Sales Tax with better efficiency.
But Mr. Dodia said the government will do well to provide further details on this aspect.