Economics Analyst Niza Phiri has expressed concern over the potential impact of proposed new tax laws on mobile money transactions, stating that it could adversely affect small businesses, especially those operating primarily in markets and relying on mobile money services.
In an interview with Flava News, Mr. Phiri highlighted that the Bank of Zambia (BOZ) is currently implementing a project to ensure 70 percent of the population is banked. However, he believes this project contradicts the agenda, as mobile money transactions are being taxed during this process.
Mr. Phiri argues that imposing additional taxes on businesses already meeting various statutory obligations and taxes would further burden small enterprises.
He states that businesses are not causing financial losses to the government, but the proposed policy implementation could harm small businesses that heavily rely on mobile money transactions. He predicted a shift towards businesses preferring cash transactions, which, he cautioned, is not secure and may compromise the flexibility provided by mobile money services since their inception.
