a financial analyst maambo hamaundu has challenged the banks in the country to explain to their clients on how they will benefit from the reduction of corporate tax when in the actual sense all the benefits from such a decision will be going to them.
speaking in an interview with radio phoenix, mr. hamaundu has stated that the investors in the banking sector have gotten what they have been crying for but most of the customers will not benefit.
he says even though the interest rates are being reduced, zambians will still not borrow to invest in huge projects.
mr. hamaundu has stated that even though government has created a win-win situation with the banks, there is need for the financial sector players to also do the same to their clients.
government recently in its budget reduced the corporate tax from 40percent to 35percent and this move has been applauded by all the players in the banking sector who have said this decision will result in effects trickling down to the clients.
and recently bankers association of zambia chairperson mizinga melu said that the reduction in corporate tax will result in more banks reducing their interest and lending rates which have been very high.