Potential Impact of the Kwacha Appreciation and Proposed Tax Provisions of the 2006 Budget Act on Zambian Agriculture
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The study aims to quantify the impact of the Kwacha appreciation and to project the
broad impact on the agricultural export, domestic production and processing sectors. It explores
the scope for mitigating actions – by farmers, commercial enterprises and government authorities –
that might provide a means of survival of export operations and the retention of income-earning
opportunities by rural communities in the commercial and small scale agricultural sectors. The
study aims to assess the impact of the Kwacha appreciation on the viability of agricultural
enterprises and income earning opportunities in the context of the new tax regulations proposed
in the 2006 budget. It is anticipated that the findings of this study should establish a
foundation for formulating a strategy for the survival of agricultural exports and domestic
production capacity by various stakeholder groups.