During the 2019 National Budget, Dr. Bwalya Ng’andu made mention that Sales Tax would not be implemented yet Value Added Tax (VAT) would be maintained.
During the budget speech, the Minister noted that government wanted to do away with VAT due to many leakages in the collection process.
“Government has decided to maintain the Value Added Tax, but address the compliance and administrative challenges,” Ng’andu said.
The decision to soldier on with VAT came about after all loopholes where sealed.
According to QTV New, the Zambia Association of Manufacturers (ZAM) has commended government for maintaining VAT as Sales Tax was a concern to the industry.
ZAM president Ezekiel Sekele has thanked the Minister for giving ear to all stakeholders.
Sekele has observed that changing a tax system midway is disruptive and not motivating to investors and is an indicator of absence in reliable policy implementation.
Meanwhile, at the 2020 Budget Breakfast meeting organized by Deloitte Zambia in Lusaka, Dr Ng’andu was also optimistic that the Zambia Revenue Authority (ZRA) will next year surpass its tax revenue collection target.
He has applauded the Authority for reaching its revenue collection in tax target for the year 2019.
Dr Ng’andu says government aims at raising about K73 billion from taxes.
Following his appointment as Minister of Finance in July, Dr Ng’andu has embarked on mending bridges in the mining sector after the proposed tax alterations and a dispute over Vedanta Resources’ Konkola Copper Mines.
Speaking at the same meeting, Deloitte Zambia Chief Executive Officer Humphrey Mulenga added that the plan to face Zambia’s external debt challenge head on, through implementation of austerity measures and refinancing of existing loans, is a positive move.
Mulenga further added that this will improve liquidity in the economy and assist, in part, to drive economic growth.
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