Zambia will delay replacing Value Added Tax (VAT) with a non-refundable sales tax for three months until July, Finance Minister Margaret Mwanakatwe said on Friday.
Mwanakatwe told the parliament in Lusaka that the delay was intended to allow for further consultations on the new tax with stakeholders. The new levy was originally scheduled to take effect in April.
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She said that the change was meant to address the problem of taxpayers claiming back VAT, forcing the government into issuing refunds and thereby diminishing revenue from the levy, as opposed to sales tax which is non-refundable.
“Moving from VAT to sales tax is a major reform and the government has since October, 2018 been engaging key stakeholders from both the public and private sectors on the issue.
“It has been imperative to ensure that all suggestions and concerns that have been raised by stakeholders are taken into consideration,” Mwanakatwe said. (NAN)