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Corporate Tax Cut To 15% For Lodges, Hotels

Lusaka ~ Fri, 25 Sept 2020

Finance minister Dr Bwalya Ng’andu has proposed a significant reduction in corporate income tax rate for hotels and lodges from 35% to 15% in the 2021 national budget.

The government hopes through this measure, the tourism sector will be resuscitated and promotion of local tourism will be enhanced.

Dr Ng’andu has also proposed to suspend import duty on safari game viewing
motor vehicles, tourist
buses and coaches.

He has also proposed to suspend license of renewal fees paid by hotels and lodges.

It has also been proposed th that the retention fees
paid by tourism
enterprises and registration fees for hotel managers be suspended.

Meanwhile, investment threshold for Zambian investors who intend to operate in the Multi Facility Economic Zone (MFEZ) or industrial park has been reduced from US$500,000 to US$100,000.

“Mr. Speaker, I propose
further tax incentives as follows:
a) Introduce a local content
allowance for income tax
purposes for utilisation of
selected local raw
materials to encourage
local content and value
addition; and reduce the investment
threshold for a Zambian
citizen to qualify for tax
incentives under the
Zambia Development
Agency Act No.11 of
2006 to US$100,000 from
US$500,000 for those
intending to operate in a
priority sector, a multi
facility economic zone or
industrial park,” he said.

Meanwhile, Dr Ng’andu said government
proposes to spend K119.6 billion in
2021 which translates to 32.6 percent
of GDP.

” Of this amount, K68.0
billion, representing 18.5 percent of
GDP, will come from domestic
revenues and grants. The balance of
K51.6 billion will be raised through financing,” he stated.

The Minister announced that the fiscal deficit is
targeted to reduce to 9.3 percent of
GDP in 2021 from the 11.7 percent
projected outturn for 2020.

4 Comments

  1. King pethias aka sugar boy forever

    Even though no laka laka sana no youth empowerment in Zambia

  2. :asoza

    A very positive step What we don’t want to see are the beneficiaries of this relief doubling their charges all in a bid to cover losses attributed to Vivid nor do we need to see standards and services compromised. .!

  3. JMS

    Maintaining big investment but small investments are suffering together with increased taxes on locals, improve your own.

  4. Asoza

    Covid* not vivid!

Comments are closed.