Melo News | Wednesday, June 12, 2024 | Lusaka
The Economics Association of Zambia (EAZ) has urged the government to enhance domestic revenue mobilization through tax reforms, capacity building, and improved tax collection efficiency.
The association suggests the use of artificial intelligence systems to increase revenue to 25-30% of the Gross Domestic Product (GDP). EAZ President Dr. Oswald Mungule has also recommended the implementation of targeted fiscal stimulus measures to support sectors affected by the drought, such as agriculture and energy.
Dr. Mungule emphasizes the need to refocus the exchange rate management policy to bring down the domestic general price level and strengthen the integration of artificial intelligence systems at the Zambia Revenue Authority (ZRA) and the Bank of Zambia for effective monitoring of export revenues.
Additionally, the EAZ President calls for prudent debt management and favorable terms for debt restructuring to maintain debt sustainability through the use of green finance instruments.
The Ministry of Finance and National Planning is advised to expand social safety nets and introduce tax allowances to families to protect vulnerable populations from the impact of inflation.
These recommendations are made in light of various economic challenges faced by Zambia, including a downgrade in GDP growth prospects, high inflation, significant public sector debt, declining mining and agricultural production, and an unfavorable exchange rate.
