Zambian Breweries commends 2022 budget
By BUUMBA CHIMBULU
THE revised tax rate, though marginal, will spur investment, which in turn will increase production and have a knock-on effect in terms of employment for businesses across the country, says the Zambian Breweries. Government in the 2022 national budget introduced new tax measures while amending the already existing ones.
Among revised taxes include reducing the standard Corporate Income Tax rate to 30 percent from 35 percent and extension of Property Transfer Tax on transfers of mineral processing and other mine related licenses at the applicable rate of 10 percent, among others. This is a win-win all round, says Zambian Breweries Country Director, Michelle Kilpin. Ms Kilpin said the revised tax rate would also boost purchases from suppliers and create more business for distributors and retails.
“We are also encouraged by government’s move to adjust specific excise duty on unpackaged opaque beer and this will help improve hygiene standards in the largely unregulated sector. “This push towards regulating this part of the local alcohol sector will benefit consumers as brewers will be forced to use standard packaging materials to qualify for a lower tax bracket,” she said in a statement. Ms Kilpin commended Government for expressing strong political will towards growing the local manufacturing sector through import tax adjustments.
She also commended Government for taking a step in bringing sanity to the local alcohol sector through increased regulation of unpackaged beer in its maiden national Budget presentation. Ms Kilpin described the 2022 budget as generally ‘pro-business’, adding that the pronouncements made in the document, especially regarding the manufacturing sector – could serve as a timely launch pad for local businesses to participate in the country’s industrialisation agenda.
