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Alba Iulia
Saturday, September 19, 2020

Non-refundable sales tax not aimed at making life difficult-PS

Economy Non-refundable sales tax not aimed at making life difficult-PS

Minister of Finance ,Margaret Mwanakatwe confers wioth Former Minister of Finance Situmbeko Musokwatwane before 2019 National budget presentation in Lusaka.
Minister of Finance ,Margaret Mwanakatwe confers wioth Former
Minister of Finance Situmbeko Musokwatwane before 2019 National budget
presentation in Lusaka.

Ministry of Finance Permanent Secretary says the proposal by Finance Minister, Margaret Mwanakatwe to re-introduce non-refundable sales tax is not aimed at making life difficult for the business community but to remove inconsistencies which have been identified in the payments of the Value Added Tax (VAT).

Dr. Emmanuel Pamo said government is paying more than it collected through VAT adding that, there are situations where exporters after getting VAT refunds are coming to the market to buy foreign exchange instead of providing it.

He said this is not the first time sales tax is being introduced in the country but that it was there in the 1990s.

The Permanent Secretary said government will ensure that the debt deficit is limited to 6.5 percent of the Gross Domestic Product (GDP) as a way of curtailing inconsistencies in the accumulation of debt.

Dr .Pamo said during a 2019 budget breakfast meeting organised by Price Water House Coopers (PWC) in Ndola yesterday.

And Dr. Pamo said government has increased funding to key sectors such as health, education and social protection contrary to what some sections of society are saying.

He was responding to some concerns by various stakeholders who wanted to know why the state has increased funding to the Ministry of Defence and Public Order adding that, the proposal to do away with VAT should seriously be looked into.

Ministry of Finance last Friday unveiled the 2019 national budget amounting to K 86.8 Billion.


  1. “Who is the man in the photo? I loved Kebby! Kebby was wise, reasonable, smart, articulate and a patriot! I miss the man! I could have voted for Kebby! Not this one! Sorry I meant Hakainde!

  2. This is fallacy to suggest that the Sales tax is the panacea to this debt trap. Instead of getting rid of VAT no reasons have been given why government was paying more than it collected. The real problem here, which these PF f-o-o-l-s are paying lip services, is the looting, fraudulent public procurement and the wanton corruption.

  3. VAT does not provide a State with much net revenue. It is not designed for that. Its purpose is to incentivise manufacturing. In PENZANOMICS, he clearly outlined why VAT was replacing the UNIP sales tax which was discouraging manufacturing. Now manufacturers & others are milking the state & the masses through VAT instead of just being glad with its incentive. Can’t go on like that. Time to be brutal with them & relieve masses from the tax pawn position.

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