Flexible taxation policy for small businesses coming

Government is working on a policy to support Small and Medium Enterprises(SMEs) in taxation to ensure that they do not pay same amount with large entities.

This is according to the Small and Medium Enterprise Development boss, Elias Mubanga.

Mubanga said it was unfair for SMEs to be paying the taxes as large companies, hence the need to introducea new taxation policy.

He said this recently at the Zanaco micro-small and medium entrepreneurs (MSMEs) business clinic in Lusaka.

“There must be a difference between what big and established companies would be paying and what small, emerging business will be paying,” Mubanga said.

He said government was creating an enabling environment by looking into the challenges that small business face which include taxation.

Mubanga said the reason president Hakainde Hichilema created the SME Ministry was to ensure that all policies that prevent small businesses from growing were looked into.

He stressed that the said SMEs were the backbone of any economy and in Zambia accounted for 90 percent of all businesses and employ over 50 percent.

Mubanga said despite their massive contribution to the economy, SMEs were still faced with several challenges such as attracting good employees and complying with various regulations.

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