The Zambia Association of Manufacturers observes that even though imports have been put at 16% under Sales Tax, local products will be more expensive than imported ones.
The Bill, which the government made public this month, has proposed a 9% Local Sales Tax and 16% on Imports which will replace the 16% Value-Added Tax currently used on 1st July, 2019.
But ZAM President Rosetta Chabala has told Money FM News that the association has been proposing to the government to consider the rate to be below 5% if it will be a tax to tax issue.
Ms Chabala said the association further proposed that if it will be a one point tax, it has to be at 9 percent.
She said this will result in the high cost of production and that the final price will not be salable to consumers.
The ZAM President stated that Zambian manufacturers will not be competitive.
“This bill has its own challenges. We are still reviewing the bill as a sector together with the sub-sector in the manufacturing industry. But what I can quickly say at the moment is that it will not favour us the manufacturers,” she said.