SALES TAX STARTS JULY 1
Written by Millennium on March 30, 2019
BUUMBA CHIMBULU writes
GOVERNEMNT has moved the commencement date of the Sales Tax to July 1, 2019 from the planned April 1, 2019 to allow for more consultations from stakeholders.
The state is expected to save more than K17 billion worth of Value Addition Tax (VAT) arears from refunds through the introduction the sales tax.
The non-refundable sales tax will be implemented on selected goods and services across the entire economy at a rate to be announced by Government.
Minister of Finance, Margaret Mwanakatwe told parliament yesterday that Government would present the Sales Tax bill to Parliament for further scrutiny on June 11 2019.
Mrs Mwanakatwe explained that Government would therefore begin implementing the tax on July 1, 2019.
The minister in her 2019 national budget proposed to abolish VAT and replaced it with a non-refundable Sales Tax.
“We still have more work to be done on this bill and there is no incompetence from Government, the bill is already in a draft form and is coming on June 11, 2019 for a second reading to Parliament. This is a tax that is new.
“VAT is a consumptive tax, so we did our homework and this is why we have taken a little bit longer. At an appropriate time, I will bring the bill that is required for sale tax,” Mrs Mwanakatwe said.
Mrs Mwanakatwe said Government had drafted a list of goods to be taxed.
The proposed sales tax will apply on both imports and local transactions.
“We have done the due diligence required on the tax and we have a list of goods to be taxed. The local rate is lower and the one on importation of finished goods is higher because we want to protect the manufacturing sector,” she said.