I had a problem with the way the previous government handled issues related to economic well being of the country. They created sacred cows that would be treated differently when it comes to taxes, tax incentives and so on! Tax payers should be protected. Moreover, we should ensure there is a balanced approach to the way people pay taxes! (I'm passionate about taxes - try to understand).
If you are going to let people go without paying taxes, let everyone go! Let us teach people to realize that they need to do things in a proper way! There is no alternative to doing it right. I believe that is the only single lesson you would teach your child. That is the only single think that a government can teach its citizens. Everything else would be dependent on doing it right. You pay the right taxes, you conduct the right business, you engage the right suppliers, you keep the right records for your business and so on.
The Past
We had some businesses which enjoyed "sacredness" under the old regime. I did not like that! Some companies got incentives, while others where taken out of business for the same actions. You needed to know someone up high to get some things done! If you don't rub the right shoulders, your business goes under! That is not a way to run an economic. It looks political, but the whole arrangement affected economics in massive proportions. Rent-seeking was the order of the day. It reached levels that government officials received calls from higher offices to implement certain things (sometimes I'm shocked when I read the papers on what led to some decisions - and always called it political pressure). We have to work at this, economic progress cannot be achieved if politics are involved. I have reminded myself not to be political on this issue as I expect progress and the day we add political aspects, we compromise progress.
The Present
I loved the pronouncements related to corruption and the "hands-off" on the economic that came from the new regime. But I has been disappointed, we have now started promoting street vendors at the expense of shop owners! Some one told me, this is done so as to improve the lives of people by giving them a means to earn a living. They can now afford to buy food, clothes, medicines, etc. This is more so because they have no trading places where they would sell their goods.
It really was a good point. And I looked at it as a right measure. But after reflecting, we need to come back to reality on the ground. The streets are dirty, diseases came spring up any time. There is no order. And there is no taxes being paid by these traders. I have not seen a ZRA officer on the streets! So we have promoted tax evasion and wonder why there are no trading places? What would make the shops in Freedom Way, Cha Cha Cha and Cairo road want to pay taxes? They face competition from the vendors - who don't pay taxes or rent! Its an imbalance in economics with no supporting argument. This is one single disappointment that the present has presented to the economic well being of this nation. I seriously hope it is temporal. We have eroded the tax base even more.
The Real Effect
It looks like the measure is aimed at encouraging entrepreneurship. People can buy and sell without paying taxes. But the real effect is teaching people to look at taxes as optional. An Indian shop owner would see the benefits of trading on the streets than paying rent and taxes! Mind you, most shops in Freedom Way, Cha Cha Cha and Cairo road are owned by local business men and women. Their businesses are being torn to pieces. Most people avoiding this chaos on the streets stop buying in town and move to malls. They promote foreign shop owners and push their businesses to greater heights. And we wonder why local businesses don't do well? There is no sense in saying "buy Zambian, promote and develop Zambia" when all Zambia is, on the street in chaos yet foreign companies are in nicely ventilated shops, with air-condition and smooth music.
We need to look at this issue and find ways to help people but not by destroying the sanity that town had. We have to do things right. And vendors on the street is not right. They need to feed their families yes, but I think they can feed them better if bigger shops paid taxes which would construct schools for their children and create employment. They can do with selling the same quantity in markets than lose all trade to malls with fresh clean vegetables.
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