Zambia replaces VAT with Sales Tax 2019

The Zambian government has announced in its 2019 Budget on 28 September a withdrawal of its Value Added Tax.

Plans in the 2019 Budget include removing the 16% VAT, first introduced in 1995. It will be superseded with a Sales Tax, only chargeable to the consumer at the end of the supply chain. The earliest implementation date would be 1 April 2019. The government has committed to paying many millions in VAT credit arrears to businesses, particularly the mining sector.

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