Sales Tax vs VAT – Best Way Forward

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Sales Tax vs VAT – Best Way Forward

On Tuesday 16th October 2018, the British Chamber of Commerce in conjunction with the Economics Association of Zambia hosted several sector experts, academics, members of the press and other stakeholders at a public forum discussion to explore the 2019 national budget and dissect the proposed introduction of Sales Tax to replace the long standing Value Added Tax (VAT).

Panelists on the night included;

  • KPMG Zambia – Head of Tax and Partner, Michael Phiri
  • International Growth Centre (IGC), Twivwe Siwale
  • Consumer Unit Trust Society (CUTS) – Coordinator, Chenai Mukumba
The event was attended by a capacity crowed of 300 people from various sectors.  Unfortunately representatives from Ministry of Finance and the Zambia Revenue Authority (ZRA) were unable to attend.

VAT OVER SALES TAX

Following detailed presentations and open floor discussions, the general consensus was that Value Added Tax is the more effective tax system compared to the proposed Sales Tax.

However, the meeting agreed that despite having an edge over Sales Tax, the Value Added Tax system was imperfect and needed some fine tuning (such as making supplies to the mines zero rated to avoid the subsequent problem of refunds) to maximise the system’s efficacy.

There were concerns about the cascading potential of Sales Tax and whether it would achieve an objective of widening the tax base.
Once details about the Sales Tax system have been created, there will be need to hold another public discussion, hopefully with Government representatives present to help address the above mentioned concerns.
Below are the three main presentations that were made by KPMG, CUTS and IGC available for download:
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2019 Budget Analysis: Is Zambia Ready for Sales Tax?

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2019 Budget Analysis: Is Zambia Ready for Sales Tax?

A public discussion forum set to analyse the 2019 National budget as well as the proposed Sales Tax. The event will be held in conjunction with the Economics Association of Zambia.
Please come and hear what we may expect over the next year or two and contribute your thoughts to the discussion.

PANELISTS
1. Ministry of Finance
2. Zambia Revenue Authority – Commissioner General Kingsley Chanda
3. KPMG Zambia – Head of Tax and Partner Michael Phiri
4. International Growth Centre – Twivwe Siwale
5. Consumer Unit Trust Society – Coordinator Chenai Mukumba

Moderator: Dr Chrispin Mphuka

ENTRY: FREE

MEMBERS, THE GENERAL PUBLIC AND MEDIA ARE ALL INVITED

For Details Contact EAZ: 0211 842 088 or 0954 932786

E-mail: secretariateaz@gmail.com