Business

‘Incorporate informal sector in economic plan’

ESTHER MSETEKA, Lusaka
THE Centre for Trade Policy and Development (CTPD) has urged Government to consider devising mechanisms that can help broaden the tax base by tapping into the informal sector when developing the proposed Zambia plus economic recovery.
CTPD acting executive director Isaac Mwaipopo said the informal sector is one of the potential sources of additional tax revenue for the country hence the need to incorporate it.
In a statement availed to the Daily Mail on Wednesday, Mr Mwaipopo said there is need to devise measures that can help in organising the informal sector for efficient tax administration.
“For instance, the Zambia Revenue Authority [ZRA] can fully automate the collection of the three percent turnover tax so as to enable local councils act as revenue agents with an incentive included based on raising targeted returns at public places such as markets and bus stations.
“More importantly, Government should ensure that proper socio-economic amenities are availed to the informal sector so they can see value in paying taxes,” he said.
Mr Mwaipopo said there are many business entities conducting economic activities outside the established control structures of Government.
He said taxing the informal sector is an opportunity which if effectively utilised, could help reduce the current fiscal deficit that the country has been grappling with.




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