Lusaka ~ Fri, 25 Sept 2020
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
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 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.