By Chinoyi Chipulu
Economist Kelvin Chisanga says the country should not anticipate benefits from the removal of tax exemptions if the government does not act promptly resolve the high landing costs on key equipment for strategic sectors such as energy and mining.
Recently, Cabinet approved the zero rating of value added tax on the importation of selected equipment and machinery used for electricity generation effective July 1, 2024 to December 2033.
Speaking in an interview with Daily Revelation, Chisanga said in as much as tax exemptions were a step in the right direction, there was need to consider taking the route of extensive investigations prior to making decisions that may have dire consequences.
“For us to work around tax waiver on energy or energy gadgets, it is important to address the current energy supply deficit that the country is experiencing in the country,” he said.
Chisanga said now was the time to set a limit with regards to what was imported into the country to cushion demand for products and services which could be addressed by harnessing the participation of locals in the production value chain.
“And coming to the issue of responding on the issue of taxing this, it’s one way to mitigate and keep a strong close attention in addressing the challenge we are facing as a country. Even when you look at the other tax situation where the import issue is coming with a strong waiver, it’s an important element because the country is at a point where there is a drought which has augmented strongly on energy, agriculture and other important sectors,” he said.
Chisanga has since urged critical stakeholders to desist from paying a deaf ear towards contributing to economic recovery which was currently on a low trajectory compared to the past.
