The Private Sector Development Association -PSDA- fears an increase in tariffs and fees for the business community next year as government shifts from tax to non-tax revenue.
PSDA Chairperson Yusuf Dodia says the move is likely to further increase the cost of doing business in Zambia.
Mr. Dodia cites the 250-Kwacha borehole registration fee as one of the non-tax revenues that has been employed by government which is cross cutting for the business community and households.
Speaking during a Budget Analysis Breakfast meeting organised by Deloitte Zambia in Lusaka, Mr. Dodia however commended government for reducing domestic borrowing which he says will help the private sector to grow.
He added that refocusing on value addition of agro-produce like Pineapples in Mwinilunga and Bananas in Luapula is key to economic growth.
Mr. Dodia further called for broadening of focus on tourism to include the Northern Tourism circuit.
And Deloitte Associate Director Tax Malcom Jhala said the sales tax provides potential challenges such as multiple tax points created through the value chain, complex exemption mechanism and dealing with cross border movements of goods and services.
Meanwhile Deloitte Audit Team Leader Alice Tembo observed that debt serving funds are likely to increase if the depreciation of the kwacha is not controlled.
But Minister of Finance Margaret Mwanakatwe said Zambians need to start paying simple things like tax and land rates meant to help protect the vulnerable through social safety nets.
Mrs Mwanakatwe also called on Zambians to start talking good about the country because perception is key in economic development.
She said the abolition of value added tax and introduction of sales tax is owing to Zambia not having a pronounced manufacturing base that adds value.
Mrs. Mwanakatwe further noted that government wants to borrow little from the banking sector moving from 4 percent to 1 percent so as not to affect the local business community.