he Zambia Chamber of Mines says they will engage the Zambia Revenue Authority to seek clarity with regard to zero rating on the importation of capital equipment and machinery for the mining sector proposed in the 2020 national budget.
In his budget presentation yesterday, Finance Minister Dr. Bwalya Ng’andu said that the measure is intended to improve cash flow for the mining sector and also reduce VAT refund claims.
Speaking in an interview with Money FM, Chamber of Mines Executive Director Sokwani Chilembo explains that the decision to maintain the value added tax instead of introducing the goods and sales tax is a commendable as it will support the growth of the mining sector.
Mr. Chilembo adds that it was clear that key sectors of national development were not comfortable with the sales tax hence the decision to discard the proposal is a progressive policy direction.
Finance Minister Dr. Bwalya Ng’andu proposed to maintain Value Added Tax by discarding the goods and services tax as he tightened measures to make VAT more effective.
He explains that based on the outcomes of the consultations, the government decided to maintain the Value Added Tax, but address the compliance and administrative challenges.