LET’S EXPLORE OPPORTUNITIES IN KEY SECTORS – CTPD

By Lumbiwe Mwanza

ZAMBIA has many opportunities in various key economic sectors that can be identified and maximized to generate income to grow the economy, Centre for Trade Policy and Development (CTPD) programs Coordinator Natalie Kaunda has said.

Ms. Kaunda is of the view that one opportunity that Zambia was not utilizing effectively hence not getting the much-needed revenue under the agriculture sector was the tobacco industry.

She noted that tobacco taxation was still very low hence the need to look at ways of increasing taxation, saying when tobacco tax rates go up, tax revenue also increases, which could help in the economic transformation of the country.

She emphasized on the need for Zambia to focus on tobacco control and consumption through enforcement of regulations in a bid to obtain revenue from the sub-sector.

She said that increasing taxation on unhealthy commodities such as tobacco would also help reduce consumption and eliminate health related complications.

“The Zambian Government should significantly increase tobacco taxes from the current 37.3% of retail price to the WHO recommendation of 75% of retail price. As efforts are being made to grow the economy, it is critical that opportunities in key economic sectors such as agriculture are all identified and maximized to generate more income,” Ms. Kaunda insisted.

She added that among CTPD’s expectations in the 2024 National Budget, are tax reforms, especially around tobacco taxation as raising taxes on tobacco products would lead to increase in their price, making the product less affordable thereby improving citizens’ health.

She said that the participation of all national-level stakeholders in the budget formulation process was essential to ensure that the Government and stakeholders moved together in creating a conducive policy environment for business, employment creation, generation of wealth, and facilitating a sustainable future for all citizens and the prosperity for the nation.

According to the Ministry of Finance, the upcoming fiscal year and in the subsequent medium-term, the Government will focus on implementing policies and programs that must deliver economic growth and development.