Maravi

Kanyama urges govt to reduce PAYE, sales tax

Kanyama urges govt to reduce PAYE, sales tax
Written by Speedwell Mupuchi
Monday, April 27, 2009 2:52:16 PM

ECONOMIST Chibamba Kanyama yesterday challenged the government to sacrifice some of its resource bases in view of the global credit crunch.

In his presentation entitled 'Understanding the global credit crunch’ during a one-day business seminar organised by the Men of Honour of Maranatha Pentecostal Assemblies of God Church in Kitwe on Saturday, Kanyama said recovery from the credit crunch would depend on, among other things, proper management of fiscal and monetary policy.

He said according to his conviction, although there was an argument that it was impossible for the government to cut costs knowing there was money to be spent, it was time the government sacrificed its resource base.

Kanyama called for responsibility in management of fiscal and monetary policy of the country.

“Government must forgo some taxes now,” he said.

Kanyama also urged the government to reduce Pay As You Earn (PAYE) in order to make the demand side more effective and also reduce the sales tax.

He also said recovery from the credit crunch would depend on global responses to the financial bailout, people’s resilience and timely responses to opportunities.

Kanyama told the more than 200 participants in the workshop that the credit crunch has had telling effects on Zambia; including the mining industry with dire consequences of closures and job losses.

He explained that lenders have had to recall their money to avoid massive losses.

Kanyama noted that due to the global credit crunch, the industrial umbilical cord - linking companies - had weakened.

And permanent secretary in the Ministry of Commerce Trade and Industry, Dr James Mulungushi, challenged Zambians to share knowledge in order to be competitive.

“It’s critical that knowledge is shared quickly in order to help us position ourselves in the global credit crunch issues,” Dr Mulungushi said.

He said economic development was not an issue of a single entity like the government but called for involvement of many stakeholders.

Dr Mulungushi expressed satisfaction that the Church was taking leadership in information sharing.

He also challenged participants to take advantage of government initiatives through the Citizens Economic Empowerment Commission (CEEC) and opportunities in the Zambia Development Agency (ZDA) to engage in businesses.

Dr Mulungushi said the funds made available through the CEEC were meant for Zambians.

He told the people that the government, through the ZDA, had mobilised a total of US $250 million in projects investment pledges and that his ministry was vigorously pursuing such pledges.

He also challenged people to take advantage of Zambia’s ‘land-linkedness’ and not ‘land-lockedness’ to become competitive in business.

Dr Mulungushi said the government on its part was committed to create infrastructure to help create competitiveness but warned: “infrastructure will not produce the wealth; you may walk on that road for 20 years and nothing will grow on that road, unless we produce it ourselves.”

And chairperson of the organising committee Johnstone Chikwanda said the theme of the conference was timely.

Chikwanda said the global credit crunch had brought pain and also posed opportunities for change.

“For when the pain of maintaining the status quo becomes more than the pain of change, change becomes inevitable,” said Chikwanda.

“Despite the agonising situation on the Copperbelt, we, the Men of Honour of Maranatha Church have decided to choose hope and courage instead of fear and desperation. A Zambian solution is what we seek.”

Labels: CHIBAMBA KANYAMA, PAYE

posted by MrK @ 1:53 PM