Tax on mobile money transactions, an expected outcome from sectoral growth—Situmbeko

The introduction of a tax levy mobile money transactions should not cause disadvantage to local players in the market, Access Bank Zambia Managing Director, Lishala Situmbeko, has advised.

Under the 2024 National Budget, government intends to introduce a levy on mobile money transfer transactions ranging from K0.08 to K1.80.

Situmbeko said a number of local players in the sector had created many jobs for young people and had contributed to the growth of the economy.

He said this on Friday September 28, 2023, during a panel discussion at the Zambia Institute of Chartered Accountants (ZICA) 2024 National Budget Analysis Dinner.

“Whenever a sector is experiencing exponential growth, it naturally attracts the attention of tax authorities. Mobile money transactions are a key economic activity and the introduction of levy on mobile money transactions is an anticipated direction,” Situmbeko said.

The Access Bank Managing Director who described the 2024 National Budget as cautiously optimistic commended government for being consistent in its articulation of policies which prioritize production.

Situmbeko said policy consistency created a stable environment, which was good for business.

“The amount of time and depth spent by Musokotwane discussing agriculture, mining, manufacturing, and tourism was a clear indication of the government’s deliberate efforts to create a sustainable and enabling environment to spur production in these sectors,” he said.

Situmbeko said there was an immense potential in the agriculture, mining, manufacturing and tourism sectors to play a part in contributing to economic growth.

On mining, he said there was need to tie down the value chain within the sector so that benefits can trickle down to citizens.

Situmbeko is confident that once issues surrounding mining and debt have been addressed, there would be a positive impact on the economy.

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