12 Aug 2019
Finance Minister Bwalya Ng’andu revealed that Zambia will postpone its proposed new sales tax, pushing for it to be implemented in January 2020 so as to revise the law.
Zambia, being Africa’s second-largest copper producer, has revealed that the new, non-refundable sales tax will replace a value-added tax.
In a statement, the ministry of finance said the draft law would be withdrawn and later re-introduced in September’s session.
Ng’andu, who has focused on boosting relations with minters ever since being appointed last month, said: “This will allow for sufficient time to address the concerns in the Sales Tax Bill that stakeholders raised.”
However, many businesses have expressed their disagreement with the tax. Zambia’s mining industry has also strongly opposed it.
The 9% tax on sales of goods and services was first meant to be introduced in April in in an effort to rebalance Zambia’s economy.