• COMMERCE, Trade and Industry Minister Margaret Mwanakatwe, Permanent Secretary Siazongo Siakalenge (right) pose with Professional Insurance managing director Geoffrey Chirwa on her right, ZITF chairperson Emmanuel Hachipuka and Professional Insurance north region head Webster Twaambo at a cocktail on Tuesday night. Picture By REUBEN TEMBO

By JAck Mwewa and Chatula KANGALI –

COMMERCE, Trade and Industry Minister Margaret Mwanakatwe has said growth in all sectors of the Zambian industry will lead to a broadened tax base.
Ms Mwanakatwe was speaking at the Zambia International Trade Fair (ZITF) Professional Insurance minister’s welcome cocktail held at Mukuba Hotel on Tuesday night.
She said Government was encouraging domestic industrial growth with a view that such growth will enhance Foreign Direct Investment.
“As Government, we feel there is need for local industries to improve their production in all sectors, we believe that improved domestic growth will also spur Foreign Direct Investment,” Ms Mwanakatwe said.
In support of such growth, Ms Mwanakatwe said Government had set deliberate investment climate reforms aimed at reducing the costs, time and procedures of complying with regulations.
“Government has set a number of investment climate reforms like the Introduction of a Single Business Levy merging 38 municipal levies and permits, establishment of One-Stop-Shop for business registration which locates all the regulatory functions related to starting businesses. We have also introduced the Regulatory Impact Assessment Framework in the Government system aimed at securing reform gains and mitigation against re-occurrence of sub-standard business licences,” she said.
Earlier, Professional Insurance Corporation managing director, Geoffrey Chirwa called for further reforms in corporate taxation and Value Added Tax (VAT) on premiums.
“We are requesting Government to further consider reforms in taxation particularly in corporate tax and Value Added tax on insurance premiums,” Mr Chirwa said.
He bemoaned that at 35 per cent corporate tax rate, Zambia had the highest rate in Southern region and hoped that it could be reduced to 25 per cent.
Mr Chirwa further said insurance bodies were negotiating with Government over the high cost of procuring various insurance products and services.