GST General Sales Tax in Zambia
1 September 2019 is the revised deadline for implementation of GST in Zambia, replacing VAT, as announced last year in the 2019 budget. Find updates,developments, news and documents here
Read Ministers’ announcement in Parliament below
NEWS & UPDATES
GST Implementation deadline moved to 1 September
STATEMENT ON THE STATUS OF SALES TAX IMPLEMENTATION, DELIVERED TO PARLIAMENT BY MRS. MARGARET D. MWANAKATWE, MP, MINISTER OF FINANCE
Mr. Speaker, I wish to thank you for giving me this opportunity to respond to the point of order raised by the honourable member and to update the House and the nation on the progress made towards the implementation of sales tax.
Mr. Speaker, as I announced in April 2019 before this House, we intended to implement the move from VAT to sales tax on 1st July, 2019.
Sir, as you may be aware, the Bill is yet to undergo parliamentary procedures which include second reading, committee stage and third reading. Once passed by Parliament the Bill has to undergo Presidential Assent. Clearly these processes cannot be completed before the stated date of 1st July 2019. To this end Mr, Speaker, I wish to inform this House and the nation that the implementation date for sales tax has been moved to 1st September, 2019.
Mr. Speaker, the Government has continued to receive submissions from both the public and private sectors as it continues to sensitize them on the content of the bill.
Sir, like I said in my brief to the House in April, 2019 we do not want to leave any stone unturned. It is in this regard that my ministry working hand in hand with Zambia Revenue Authority went to all the ten provinces to engage stakeholders in order to get their key input on the Bill that was presented before this August House. We also interacted with professional bodies, academia, think tanks and other business associations.
Mr. Speaker, may I take this opportunity to thank the Zambian people for their support and determination to ensure that this nation gets enough resources to provide social services. I also wish to inform the nation that their views and suggestions will be taken into account as we implement sales tax.
Additionally, Mr. Speaker I propose to hold a workshop with all Members of Parliament next week to discuss and clarify all issues on sales tax. I look forward to the support of the House during further consideration of the Bill presented before this House.
I thank you Mr Speaker.
GST 1 July deadline may not be met – Minister
The Business Telegraph has noted that further delays in the implementation of Sales Tax will cause more pricing uncertainty especially that it has already negatively affected the private sector.
The Telegraph tells Money FM News that analysts have indicated that this has adverse implications on business confidence as it speaks more about government’s policy inconsistencies.
Finance Minister Margaret Mwanakatwe announced recently that Zambia may not meet the first of July deadline to implement the sales tax as it still has to undergo some processes before parliament.
She says the opening of Parliament on the 18th of June will affect the implementation of sales tax on 1st July 2019.
Speaking in an interview with Money FM News Mrs. Mwanakatwe says the sales tax bill will have to undergo various stages of reading before it is passed into law.
In a related development, the Zambia Revenue Authority (ZRA) has called on Manufacturers to submit their suggestions for goods to be added to the tax-exempt list under the new tax regime before the opportunity for submissions closes this month.
ZRA Corporate Communications Manager Topsy Sikalinda says the Authority and the Ministry of Finance are still going around all provinces to ensure that all producers are informed about the tax-exempt list.
Mr. Sikalinda says in an interview with Money FM News that the exercise is progressing well so far as the Authority is receiving positive response from industry players.
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