EMPLOYERS CALL FOR TAX REFORMS TO SUPPORT SMES

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Posted by admin on April 15, 2026 at 9:00 AM

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Employers have urged Government to introduce tax reforms that support small and medium enterprises (SMEs), stressing that businesses are not asking for a free ride but a competitive playing field.

Speaking at the Zambia-Africa Investment and Industrialisation Summit 2026, United Federation of Employers in Zambia (UFEZ) President Dr. Humphrey Monde said taxation must strike a balance between revenue generation and business sustainability.

“Taxation is not inherently bad – it funds our roads, schools, and hospitals. But when taxation becomes a burden rather than a partnership, businesses struggle, jobs are lost, and the informal economy expands,” Monde said.

He pointed to Rwanda as an example of how targeted tax incentives can stimulate SME growth, citing simplified VAT filing requirements and digital tax platforms. Monde proposed measures such as tax rebates or holidays for new SMEs, reduced VAT, customs duty exemptions on capital equipment, and incentives for women-led enterprises.

“We are not asking for a free ride. We are asking for a competitive playing field,” he emphasized, adding that UFEZ is ready to work with Government to design a framework that balances fiscal needs with private sector growth.

Labour and Social Security Minister Brenda Tambatamba responded that Government remains focused on creating a stable environment for investment and employment, stressing the importance of social dialogue between employers, workers, and policymakers.

She highlighted Zambia’s partnership with the International Labour Organization (ILO) in promoting fair and balanced labour systems.

“To attract investment, Zambia must maintain a conducive labour environment characterised by clear and predictable labour laws, efficient regulatory systems, strong institutions, and protection of workers’ rights,” Tambatamba said.