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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).

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.

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Address
74 Independence Avenue
Website
http://www.britishchamberzambia.org/
Phone
+260 965 180144
Email
john.paton@britishchamberzambia.org
Sales Tax vs VAT – best way forward
British Chamber of Commerce in Zambia
British Chamber of Commerce in Zambia
Lusaka
Chamber of Commerce
This chamber of commerce is an independent non-profit organisation that helps promote trade and commercial relations between Zambia and the United Kingdom. Set up in Zambia as a company limited by guarantee, the chamber seeks to play a major role in identifying and growing business opportunities locally and regionally. It collaborates with other business groups and fosters strong ties with regional counterparts. The British Chamber of Commerce in Zambia works with businesses of all sizes and sectors.
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