LUSAKA, April — Zambia’s cabinet has approved for publication and introduction in parliament of a bill that aims to introduce a new tax which has received a backlash from stakeholders, a spokesperson said on Tuesday.
Last week, the government deferred the implementation of the sales tax which was supposed to come into effect on April 1, 2019 after it received opposition in order to allow for more consultations.
The implementation of the tax which was introduced to replace the value added tax has since been pushed to July 1, 2019.
Dora Siliya, Chief Government Spokesperson, said cabinet approved for publication and introduction in parliament of the sales tax bill during its sitting on Monday, April 1, 2019.
The bill will be introduced in parliament this week.
She said in a statement that cabinet was of the view that the proposed sales tax will help in halting escalation of value added tax refunds to firms which dates back to 2009.
“The value added tax refunds have greatly negatively affected the economy and, therefore, the sales tax is the best way forward for the country,” she said.
She added that the sales tax will enhance domestic revenue mobilization by broadening the tax base and simplifying administration as well as compliance processes. – XINHUA