Sales Tax Shelved
In August, ZACCI in collaboration with the Zambia association of manufacturers and private sector alliance held a meeting with the minister of finance and other professional to discuss the possible implications of Sales Tax. The team put forth a compelling case to keep VAT.
On Friday 27th, Finance Minister Bwalya Ng’andu announced that Zambia will not replace its Value Added Tax (VAT) with a non-refundable General Sales Tax. Dr. Ng’andu said this when he presented a 106 billion kwacha budget, translating into 32.4 percent of the Gross Domestic Product.
Dr. Ng’andu also reiterated that the increase in budgetary allocation towards dismantling debts will improve the circulation of money thereby inducing the country’s economic development, adding that there is need to clean the payroll system to avoid possible expenditure on ghost workers.