The Zambia Revenue Authority ZRA says it is in full support of the introduction of sales tax as it will benefit the ordinary Zambian citizens by paying a lower tax than the current value added tax VAT.
Acting ZRA Commissioner General Brigitte Muyenga says on behalf of the Commissioner General who is currently out of the country that the idea to change the tax regime was originated by the authority
She says this in response to a recent statement by the Patriots for Economic Progress (PEP) leader Sean Tembo that seems to suggest that the Authority was against the re-introduction of sales tax.
Ms. Muyenga explains that the Authority did a detailed analysis and went to suggest to the Ministry of Finance that Zambia should migrate from VAT to Sales Tax due to weaknesses and complications in its administration.
She says under sales tax, ZRA wants to provide a solution to the country’s consumption tax system which will reduce on frauds and has led to transfer pricing malpractice related to VAT.
Finance Minister Margaret Mwanakatwe has also stated that the ministry will soon constitute a Tax Policy Review Committee to address all concerns in the budget as well as work on the modalities of the sales tax.
The Authority says it is taking all concerns and comments raised to the parent ministry so that all Zambians can have an input in the economic governance of the country.
Ms. Muyenga said this in a statement to Money fm.