PWC bemoan new taxation
Published On October 4, 2017 » 2094 Views» By Davies M.M Chanda » Business, Stories
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By CHATULA KANGALI –
A MULTINATION  professional body  has said increase in the  number of  taxes proposed  in the 2018 budget would negatively  affect the   flow  of Foreign Direct Investment( FDI)in the  country.
Pricewatercoopers (pwc) observed that some of the  taxes  proposed like  the  excise  duty  on fuel and cement  and the introduction of five percent property  transfer tax  on  intellectual properties would  contribute  to  the  high cost of  doing business  in Zambia.
Pwc Tax Director  Jyoti Mistrys said there was  need  to  work  on some taxes  in order  to reduce  the  cost  of  business and  attract  more investment .
Ms Mistrys  said the rate of taxation in Zambian was  among the  highest  in the  region  which   would  make  Zambia less  competitive  in Foreign Direct  Investment.
“ There  has  been   many  changes   in taxation in the  2018  Budget, however, the  rate  of taxation is  still   high  compared  to performing  economies  such as Botswana and South Africa  among  other.
Investors  would  rather set up  their  businesses  in  countries  were  they are few  taxes, ”  she said.
Ms Mistrys was  speaking  during  a stakeholders  budget analysis   at the  Protea  Hotel  in Ndola  on  Monday  this  week.
Stakeholders included the chamber of commerce, the manufacturers, mining firms and tax agents.
Ms Mistrys said with the high number of taxes in the country  rate tax avoidance and invasion was likely to increase.
During the discussion, the  stakeholder  urged  Government  to  give a  clear  explanation  on the   introduction of  K2  cement  levy  meant  for  infrastructure  development.
Pwc observed that the removal of the income tax incentives was unlikely to attract additional investment in priority sectors.
Ms  Mistry  said the provision of accelerated  capital allowance would not  benefit investors  that apply for  the Zambia Development Agency  (ZDA) licences  as investors   would be unable  to get  full tax relief on expenditure.

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