SALES TAX: ZAM DEMANDS MORE EXEMPTIONS

THE exemption list on sales tax released so far is not enough to protect local manufacturers, Zambia Association of Manufacturers (ZAM) president Rosetta Chabala has said. In an interview with the Daily Nation yesterday, Ms Chabala said what Government shared earlier on the list was not sufficient to protect local manufacturers. Ms Chabala said the association could only comment fully when the final exemption list was available. “We can only comment when the final list is there because we are still making negations on some products that have been left out,” she said Ms Chabala said the association submitted more products to the government that needed to be exempted and the negations were still on going. Government had exempted export of goods from Zambia by, or on behalf of, a taxable supplier, where evidence of exportation was produced as the Commissioner-General may require. Government also made exemption on the supply of freight transport services from or to Zambia, including transshipment and ancillary services that are directly linked to the transit of goods through Zambia to destinations outside. The other exemption made was on supply of goods by a duty free shop approved under regulation 51 of the Customs and Excise (General) Regulations, 2000, for export by passengers on flights to destinations outside Zambia. The list also exempts the supply of goods, including meals, beverages and duty free goods for use in aircraft stores on flights to destinations outside Zambia, the supply of aviation fuel, the supply of services which are physically rendered outside the country. The list also exempts supply of an inclusive tour to a tourist by a tour operator or travel agent licensed as such under the Tourism and Hospitality Act, 2007, if the contract was entered into before January, 1 2014, subject to such conditions as the Commissioner-General may require, exportation of goods by a tourist, subject to such evidence and conditions as the Commissioner General may require.