By Clozzen Bikale in Solwezi
North Western Chamber of Commerce, Trade and Tndustry (NWCCI) President Mukumbi Kafuta has urged government to consider increasing the basic rate from 16% to 17.5% to raise more tax from all economic sectors before implementation of the sales Tax.
Speaking during a media briefing Mr Kafuta says the proposed sales tax in its current state could be punitive across the supply chain by its non-refundable nature.
He said the concern of VAT being unable to raise the necessary taxes could be overcome with a new VAT rate structure , changes to refund processes , limits on total refunds and collection currency as some of the ways to improving tax efficiency.
“Sales Tax need to be fully defined in its exemptions and procedures with its economic equity and efficiency being studied with greater depth to shield Zambian economy from suffering the negative impact of inflation and inactivity.
“I agrees with the fact that fiscal policy may need to be tightened in order to create more opportunities to increase government’s financial capacity through increased revenue. The proposed sales Tax of 16% on import and 90% on domestic sales are intended to raise more indirect taxes through supply chain but though there are tax exemptions on certain imports,” he said.
