THE concerns raised by Zambia Association of Manufacturers (ZAM) president Ashu Sagar over the government’s decision to increase sin taxes mid-year are not only valid, they are urgent. We strongly agree with Mr. Sagar’s assessment that the government’s approach to taxation, especially within the productive sectors of the economy, is misplaced and potentially dangerous. Let us begin with a fundamental truth: no country has ever developed by overtaxing its citizens or the businesses that form its economic backbone. Taxation is a vital tool of economic management, but it must be applied strategically, fairly, and with foresight. When taxes become punitive, when they target only the few formal players while leaving out the sprawling informal sector, they stop being a development...
