Q FM Africa's Modern Radio
KPMG Zambia has become the latest Tax and Advisory firm to favor the abolished Value Added Tax (VAT) over the newly introduced Sales Tax.
KPMG Zambia Director Michael Phiri says the VAT was more efficient than the Sales Tax is likely to be in collection of tax by government.
Speaking during a public discussion on the Sales Tax organized by the Economics Association of Zambia (EAZ) in Lusaka, Mr. Phiri said the Sales Tax will bring about cascading of tax in the Country.
Twivwe Siwale
Mr. Phiri says the only issue that his firm thinks is a problem in Zambia with regards tax collection is compliance by citizen to pay tax which currently stands at 16 percent.
And policy think tank International Growth Center (IGC) Country economist Twivwe Siwale say her firm has established that unlike with the VAT, tax evasion is likely to increase with the Sales Tax.
Ms. Siwale says this is because there will be a tendency of businesses colluding and working together to avoid paying the tax.
Meanwhile Consumer Unity & Trust Society (CUTS) international Zambia center coordinator Chenai Mukumba says it is too early to say what the impact of the Sales Tax will be on the Zambian economy.
Ms. Mukumba states that her firm, in particular, does not have enough details on how the Sales Tax, which will be enforced in April 2019, will impact the economy.