Zambia is the largest exporter of emeralds in the world, but since the days of Kaunda, this sector has been dominated by foreigners. The limited participation of Zambians occurs when they steal these stones from known mines on the Copperbelt and sell them at giveaway prices to foreigners, who then take them outside the country illegally to sell at much higher prices.

This industry is capital-intensive, and with Zambians lacking generational wealth, it has been dominated by foreigners and foreign firms who have become overnight billionaires from Zambian resources. Ideally, the government, with its financial power, could have helped capable Zambians grow in this sector or stopped abusing ZCCM and tasked it with running such industries on our behalf.

To avoid paying corporate income tax, these companies auction their stones abroad and misrepresent the sales value. To address this, the government forced local auctions of such stones, but the appetite for participation by these firms was minimal. Consequently, the government introduced a progressive 15% export tax to ensure Zambia benefits, and that’s when the situation escalated. These companies began announcing work stoppages and suspensions of mining activities. It seems their lobbying has paid off, and the government has yielded to their demands.

What is ironic is that there are many tax measures in place that are hurting small Zambian businesses, yet the government is not listening. This includes the increase in the threshold for turnover taxes, as well as high council and other government fees for business operations, which have increased by over 300% in the past three years. Zambians have complained, but no one seems to listen. My question is, for whom is this country?

To make matters worse, personal income tax is very high, which discourages companies from offering higher salaries and reduces disposable income for the average Zambian. We have failed to find a formula for decades to create wealth for ourselves because we have failed to feel empathy for our own situation!

The government is advised to deeply introspect, as it is losing the Zambian entrepreneur. Every day, new taxes, tariffs, and laws are being introduced that primarily target the same people and push them out of business. Why do I need a tax clearance certificate as an individual when my Pay As You Earn (PAYE) is taxed at source? I never even get a chance to see my own money. Such hindrances and impediments will not lead us anywhere.

To be fair, even foreign businesses are feeling the strain of over-taxation and the many administrative and economic barriers to doing business. Widening the tax base doesn’t mean increasing taxes for those who are already over-taxed but rather enrolling new taxpayers by encouraging the formalization of new businesses.