Uncertainty grips ZAM as Sales Tax implementation looms

Zambia Association of Manufacturers [ZAM] President Rosetta Chabala says the manufacturing sector is facing a huge uncertainty over the sales tax to be implemented on 1^st April, 2019.

Speaking at the Zambia Association of Manufacturers high level meeting in Lusaka, Mrs Chabala says the sector has no idea the impact the new tax policy will have once it comes into force.

She says manufacturers want the uncertainty surrounding the new tax policy to be addressed so that they can know whether the policy will increase or reduce the cost of business to enable them plan ahead.

Mrs Chabala states that the success of the manufacturing sector is strongly dependent on implementation of good policies, with taxation policies being one of the most important.

She adds that the harsh conditions in both the local and international market where manufacturers suffer inconsistency in policy implementation, depreciation of the kwacha; increased taxation rates and the high cost of energy have contributed to slow economic growth in the country.

Mrs Chabala says such unfavorable conditions have far reaching consequences and have further contributed to the high cost of operations for manufacturing companies which has led to job cuts and sometimes closure of companies.

Speaking at the same meeting, Ministry of Commerce,Trade and Industry Permanent Secretary Kayula Siame says issues that affect the manufacturing sector are very important to the ministry.

Mrs Siame has since commended ZAM and Zambian Breweries for organizing the dialogue meeting which she says gives government an opportunity to get views from concerned stakeholders and discuss the impact of the new tax policy to be implemented on 1^st April where the sale tax will be introduced to replace the current VAT system.