Cotton Board says five-years tax relief to benefit local cotton producers, ginners

The Cotton Board of Zambia has commended government for its decision to grant a five-year tax relief to local cotton producers and ginners.

Finance and National Planning Minister, Situmbeko Musokotwane, on Friday during a budget presentation for 2024, announced a five-year tax relief for local cotton producers and ginners.

Speaking to Zambia Monitor in an interview in Lusaka on Tuesday, the Board stated through its Chief Executive Officer, Sunduzwayo Banda, that the incentives would increase the scale of cotton production in the country as well as improve prices and services provided to cotton farmers.

Banda advised local and international investors to use this opportunity to invest in Zambia’s textile industry.

“Tax free period for five years is very good for investment for the locals. We want to see quality seed on the market, seed in the Agro-dealer shops: highest grade and certified given to farmers,” he said.

Banda indicated that this move was critical to contributing to job creation for locals and increasing rural household income.

This comes after Finance Musokotwane reviewed the five-year tax holiday on profits for local cotton seed producers during the presentation of the 2023 National Budget.

Contributed by Emmanuel Lungu

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