Sales tax de­bates elate ZRA

Daily Nation Newspaper - - HOME NEWS - By NA­TION RE­PORTER

THE Zam­bia Rev­enue Au­thor­ity (ZRA) says it has re­ceived over­whelm­ing re­sponses from the pub­lic on the modal­i­ties of im­ple­ment­ing the Sales Tax an­nounced by the Fi­nance Min­is­ter in the 2019 na­tional bud­get.

Act­ing Com­mis­sioner Gen­eral Brigitte Muyenga yes­ter­day said since the an­nounce­ment of the bud­get on Septem­ber 28, 2018, stake­hold­ers have been in­vited to give com­ments and sug­ges­tions to the Min­istry of Fi­nance on the ex­e­cu­tion of the 2019 bud­get. Ms. Muyenga said ZRA was tak­ing all con­cerns and com­ments raised to the par­ent min­istry so that all Zam­bians could have an in­put in the eco­nomic gov­er­nance of the coun­try. “The au­thor­ity is in full sup­port of sales tax and the idea was orig­i­nated by the au­thor­ity to mi­grate from VAT to sales tax which will def­i­nitely be lower than VAT and ben­e­fit the or­di­nary Zam­bian cit­i­zens by pay­ing a lower tax than the cur­rent VAT. “Sales tax will also help broaden the tax base and in­crease rev­enue con­tri­bu­tions by all sec­tors and in­di­vid­u­als in the en­tire value chain,” Ms. Muyenga said. She said ZRA did a de­tailed anal­y­sis and went to sug­gest to the Min­istry of Fi­nance that Zam­bia should mi­grate from Value Added Tax (VAT) to Sales Tax due to weak­nesses and com­pli­ca­tions in its ad­min­is­tra­tion. She said the au­thor­ity believes that sales tax will cre­ate a steady cash flow for both the busi­ness com­mu­nity and Gov­ern­ment un­like the case of VAT re­funds where busi­ness en­ti­ties had to wait for a re­fund in or­der to con­sis­tently op­er­ate. She said un­der sales tax, ZRA wanted to pro­vide a so­lu­tion to the coun­try’s con­sump­tion tax sys­tem which will re­duce on frauds and stop pric­ing mal­prac­tice re­lated to VAT. The 2019 bud­get saw the re-in­tro­duc­tion of Sales tax to re­place the Value Added Tax (VAT) as pro­posed by the Zam­bia Rev­enue Au­thor­ity. Fi­nance Min­is­ter Mar­garet Mwanakatwe has said that the min­istry would soon con­sti­tute a Tax Pol­icy Re­view Com­mit­tee to ad­dress all con­cerns in the bud­get as well as work on the modal­i­ties of the sales tax.

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