ZAM REVIEWS NATIONAL BUDGET

By Daily News Reporter

The Zambia Association of manufacturing (ZAM) with support from the USAID Revenue for Growth Project, held the Post-Budget meeting. The event was graced by the Minister of Finance and National Planning, represented by Mrs. Mwaka C. Mukubesa, Acting Permanent Secretary – Budget and Economic Affairs stated that ZAM’s proposal align with the government’s overarching objectives of fostering a vibrant and competitive manufacturing sector,

Mrs. Mukubesa noted that this year’s budget may not have fully addressed all of the association’s request due to fiscal constraints

She ensured the sector that the government has taken steps to support the sector through targeted tax incentives, infrastructure improvement and measures to protect the sector

“THE GOVERNMENT AND ZAM CAN WORK TOGETHER TO CREATE AN ENVIRONMENT THAT ENCOURAGES INVESTMENT, INNOVATION, AND SUSTAINABLE ECONOMIC GROWTH IN ZAMBIA.”

During the meeting, ZAM President Mr. Ashu Sagar presented our analysis of the 2025 National Budget. Key highlighted the sector record which showed a modest growth of 4.7% in 2022, contributing 0.4% to national GDP growth.

Increased allocation to the Zambia Credit Guarantee Scheme, introduction of surtaxes on selected imports to support local production, and enhanced road infrastructure through PPPs.

Mr. Sagar also noted that they are some of the absence of new tax concessions in 2025 which may hinder industrial growth, while increased excise duties on non-alcoholic beverages and tobacco could drive up production costs.

Mr. Sagar urged the government to adjust Corporate Income Tax for value-added exports, reform the VAT system to address refund delays, and implement cost-reflective electricity tariffs while ensuring affordability.

Meanwhile Proudly Zambia Campaign Chairperson Ms. Kim Otteby added that ZAM complied and submitted various proposals on Tax and Nontax to benefits ZAM for 2025 national Budget.

She also noted that some proposals were adopted including on the introduction of a 5% selected goods surtax on imported printed paper products and packaging materials the increment of 20% SGS on imported garden hose pipes   

“THESE MEASURES ARE DESIGNED TO SUPPORT DOMESTIC PRODUCTION, ENCOURAGING GROWTH IN ZAMBIA’S PACKAGING SECTOR AND PROMOTING LOCAL INVESTMENTS IN INDUSTRIES SUCH AS AGRICULTURE. “ Otteby said.

(PICTURES bY ZAM)

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