A global network of professional firms providing Audit, Tax and Advisory says Sales Tax will not work in Zambia that has replaced Value Added Tax.

KPMG Partner Michael Phiri emphasizes that VAT remains the best indirect tax that can promote investment by reducing costs of doing business in Zambia.

Mr. Phiri says the introduction of sales tax will scare away investors because no investor would want to invest his money in an uncertain economy. He was speaking at the Economic Association of Zambia discussion of the 2019 budget analysis dabbed “Is Zambia ready for sales tax ‘’.

He says VAT is good for the nation because it is invoice based, it is uniform and that it is self-policing. He says before value added tax was introduced sales tax was in place but it never worked for the country, adding that the more reason government opted for value added tax.

He says sales tax is not good for the nation because it is a consumer tax and will have a negative impact on the consumer. He says sales tax dose not inspire much because it has no exception as compared to value added tax.