Cabinet has approved publication and introduction in Parliament of the Sales Tax Bill 2019.
The bill which will be introduced to Parliament on Tuesday April 2,2019 and is expected to take effect on July 1, 2019.
The objectives of the bill are to introduce a sales tax on supply of goods in the republic on manufacturers, producers’ distributors, wholesalers and retailers and imported goods in the country.
Chief Government spokesperson Dora Siliya says the tax will also be imposed on service providers and importers of services.
Announcing resolutions of the Cabinet meeting which was held yesterday at State House, Ms Siliya however said certain supplies, imports and exports of goods and services shall be exempted from tax.
She has disclosed that cabinet approved the Income tax amendment bill 2019 which will reverse the turnover tax threshold from 800,000 Kwacha to 500,000 Kwacha per annum.
Ms Siliya says this is to harmonise it with the sales tax threshold.
She explains that the proposed Sales Tax is aimed at stopping the escalation of Value Added Tax refunds, dating back from 2009 and now stands at 17.9 billion Kwacha as at January 9, 2019.
Ms Siliya noted that the VAT refunds have negatively affected the economy and, therefore, the Sales Tax is the best way forward for the country.
She is confident that the introduction of the Sales Tax will enhance domestic revenue mobilisation broadening the tax base and simplifying administration as well as compliance processes.