By Daily Revelation Editor
In the realm of taxation and economic policy, the lessons drawn from various leaders can often provide valuable insights into better governance practices.
One such lesson emerges from the approach the newly sworn -in US President Donald Trump, has taken, who at his inauguration on Monday, January 20, 2025 emphasised the importance of no overburdening the American citizens with taxes, a strategy that contrasts sharply with the current fiscal realities faced by many Zambians today.
President Trump has placed tax relief for American citizens as a priority, simultaneously pledging not to over-tax them to benefit other nations. While critics may debate and argue the effectiveness and consequences of his policies, the underlying principle remains pertinent: a government should prioritise the welfare of its own citizens over extensive concessions given to foreign entities under the pretext of foreign investment and job creation. This is especially critical for Zambia, where citizens are feeling the weight of high taxation while multinational companies –particularly in the mining sector – benefit from unreasonable tax holidays and incentives.
Zambia has a rich and diverse array of natural resources, which are essential for economic growth and development. However, all these resources only benefit foreigners in the name of the so-called investment. When the fiscal framework disproportionately favours foreign investors, it creates an imbalance that unfairly impacts local citizens. This is a hard reality facing our people today.
We say this with a clear sense of mind that as the government seeks to cultivate foreign investment to stimulate economic growth, it is crucial to strike a balance that ensures the fiscal burden does not disproportionately fall on Zambians, who are already grappling with high living costs and a struggling economy. The contrast is stark: while Zambian taxpayers face rising taxes justified as necessary for national development, foreign investors, especially in the mines, are enjoying tax exemptions that significantly reduce their contributions to the national coffers. This raises questions about equity, resource distribution, and long-term viability of such policies. In seeking foreign investment, there must be a clear understanding that these investments should also yield significant benefits for the local economy and citizenry.
To build a sustainable economic future, the government must learn from President Trump’s playbook, focusing on creating a more equitable tax regime that encourages both domestic stability and responsible foreign investment. This includes revisiting tax incentives to ensure they align with national development goals and establish clear criteria for foreign investment that prioritises local job creation and inclusive economic growth.
Striking a harmonious balance between attracting foreign investment and ensuring that local citizens are not over-taxed – and thus overburdened – can empower Zambians and foster a more robust and resilient economy. As Zambia navigates its economic challenges, it is imperative to remember that a thriving economy is not measured by the influx of foreign capital, but rather by the well-being and prosperity of its citizens.
Related
By Daily Revelation Editor
In the realm of taxation and economic policy, the lessons drawn from various leaders can often provide valuable insights into better governance practices.
One such lesson emerges from the approach the newly sworn -in US President Donald Trump, has taken, who at his inauguration on Monday, January 20, 2025 emphasised the importance of no overburdening the American citizens with taxes, a strategy that contrasts sharply with the current fiscal realities faced by many Zambians today.
President Trump has placed tax relief for American citizens as a priority, simultaneously pledging not to over-tax them to benefit other nations. While critics may debate and argue the effectiveness and consequences of his policies, the underlying principle remains pertinent: a government should prioritise the welfare of its own citizens over extensive concessions given to foreign entities under the pretext of foreign investment and job creation. This is especially critical for Zambia, where citizens are feeling the weight of high taxation while multinational companies –particularly in the mining sector – benefit from unreasonable tax holidays and incentives.
Zambia has a rich and diverse array of natural resources, which are essential for economic growth and development. However, all these resources only benefit foreigners in the name of the so-called investment. When the fiscal framework disproportionately favours foreign investors, it creates an imbalance that unfairly impacts local citizens. This is a hard reality facing our people today.
We say this with a clear sense of mind that as the government seeks to cultivate foreign investment to stimulate economic growth, it is crucial to strike a balance that ensures the fiscal burden does not disproportionately fall on Zambians, who are already grappling with high living costs and a struggling economy. The contrast is stark: while Zambian taxpayers face rising taxes justified as necessary for national development, foreign investors, especially in the mines, are enjoying tax exemptions that significantly reduce their contributions to the national coffers. This raises questions about equity, resource distribution, and long-term viability of such policies. In seeking foreign investment, there must be a clear understanding that these investments should also yield significant benefits for the local economy and citizenry.
To build a sustainable economic future, the government must learn from President Trump’s playbook, focusing on creating a more equitable tax regime that encourages both domestic stability and responsible foreign investment. This includes revisiting tax incentives to ensure they align with national development goals and establish clear criteria for foreign investment that prioritises local job creation and inclusive economic growth.
Striking a harmonious balance between attracting foreign investment and ensuring that local citizens are not over-taxed – and thus overburdened – can empower Zambians and foster a more robust and resilient economy. As Zambia navigates its economic challenges, it is imperative to remember that a thriving economy is not measured by the influx of foreign capital, but rather by the well-being and prosperity of its citizens.
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