Friday, April 19, 2024

Sales Tax implementation deferred to September 1

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Finance Minister, Margaret Mwanakatwe
Finance Minister, Margaret Mwanakatwe

Government has again deferred the implementation of the General Sales Tax to September 1, 2019.

The General Sales Tax was initially supposed to be implemented starting from July 1, 2019.

Delivering her ministerial statement in Parliament today, Finance Minister Margaret Mwanakatwe said the implementation of Sales Tax was differed because the Bill has not yet undergo parliamentary procedures which include second reading, committee stage and third reading.

Ms Mwanakatwe said once passed parliament the bill has to undergo Presidential assent.

“Clearly these processes cannot be completed before the stated date of July 1, 2019. To this end I wish to inform this house and the nation that the implementation date for sales tax has been moved to September 1, 2019.

“Government has continued to receive submissions from both the public and private sectors as it continues to sensitize them on the content of the bill. Like I said in my brief to the house in April, 2019, we do not want to leave any stone unturned. It is in this regard that my ministry working hand in hand with Zambia Revenue Authority went to all the 10 provinces to engage stakeholders in order to get their key input on the bill that was presented before this august house. We also interacted with professional bodies, academia, think tanks and other business associations,” she said.

She said there is need of support and determination to ensure that the nation gets enough resources to provide social services.

Ms Mwanakatwe proposed to hold a workshop with all Members of Parliament next week to discuss and clarify all issues on the General Sales Tax.

Below is the full statement

Mr. Speaker, I wish to thank you for giving me this opportunity to respond to the point of order raised by the Honourable member and to update the house and the nation on the progress made towards the implementation of sales tax.

Mr. Speaker, as I announced in April 2019 before this house we intended to implement the move from vat to sales tax on 1st July, 2019.

Sir, as you may be aware, the bill is yet to undergo parliamentary procedures which include second reading, committee stage and third reading. Once passed by parliament the bill has to undergo presidential assent.

Clearly these processes cannot be completed before the stated date of 1st July 2019. To this end Mr, Speaker, I wish to inform this house and the nation that the implementation date for sales tax has been moved to 1st September, 2019.

Mr. Speaker, the government has continued to receive submissions from both the public and private sectors as it continues to sensitize them on the content of the bill.

Sir, like I said in my brief to the house in April, 2019 we do not want to leave any stone unturned. It is in this regard that my ministry working hand in hand with Zambia Revenue Authority went to all the ten provinces to engage stakeholders in order to get their key input on the bill that was presented before this august house. We also interacted with professional bodies, academia, think tanks and other business associations.

Mr. Speaker, may I take this opportunity to thank the Zambian people for their support and determination to ensure that this nation gets enough resources to provide social services. I also wish to inform the nation that their views and suggestions will be taken into account as we implement sales tax.

Additionally Mr. Speaker I propose to hold a workshop with all members of parliament next week to discuss and clarify all issues on sales tax. I look forward to the support of the house during further consideration of the bill presented before this house.
I thank you Mr Speaker.

30 COMMENTS

    • And some lazy foooooool will be at Trade Fair this weekend talking about stable economic climate and attracting investors!!

    • PF just humble yourselves and openly accept Hakainde’s economic advise.
      If Ba Mayo Inonge and Mayo Sumaili visited HH and offered him a temporary Financial Minister, and that he works from home in New Kasama. HH will proudly accept to work for Zambia, I have followed that guy very well, he is a rich good guy.

    • Even my cousin who has been selling umunkoyo drink for last 20 years is so consistent. When get sick, friends go and sale for her to keep customers happy.
      PF cabinet should be on medical marijuana to minimize epilepsy attacks during their AAA meetings. Nobody knows what this PF is about.
      Ni chipupuntu iyi.

    • Kekekeke hahahaha , just picturing them kicking empty brown Chibuku scad tomorrow morning during “keep Zambia clean”.

  1. Come to think of it, has this woman, as a Finance Minister, ever delivered anything tangible, apart from being in denial about our economy and dancing at political rallies? I doubt if she is as hard-working as the credentials she throws around. This thing will be implemented next year. Anyway she has another political rally coming up in Katuba where she can go and strut her stuff on a stage with loud music, and drown all her responsibilities with whiskey.

    I mean why did she make these changes when she knew the infrastructure to support this change was complex and not in place? All this schizophrenic behaviour can only be attributed to one thing and one thing only: Desire to avoid VAT refunds and plug a huge debt hole. Nothing else. very impulsive and no thought through

  2. Massive incompetence, Mrs Katwekatwe! In October we know you will suspend it indefinitely!!
    What is wrong with drunkard woman? You come up with a policy that you cant even interpret or implement!
    Meanwhile you already included have the revenue from such tax into your current budget so how are you going to fill in the gaps?
    Just fire this whore, why is she getting paid from the Tax Payer’s money when she cant do the job?

  3. What people forget that millions of kwacha is wasted implementing these ill thought out ideas…we advised them against but they still carry on we should be holding them to account…similar to that pointless airline they poured $30 million in, when civil servants are being paid.

  4. Ayatollah was on Monday inched the earshot of his voyeurs thinking that TAX SALES should be knocked out.

    In French they say”Le’chien est toujourrs un chien “.

    • They only thing Lazy Lungu is constituent with is jogging on Saturday morning …that’s how useless the man is

  5. Meanwhile the proposition is already impacting on inflation…prices of essential goods are on the rise obviously against a backdrop of July 1speculations

  6. Only the other day HH was asking the PF gov. to rescind the decision. Previously he explained the economic reasons. Perhaps they have ‘heard’ but are too embarrased to ‘turn round’.

    HH also questioned them on the procedure of making a decision (even drafting the Bill) AND THEN going round to ‘consult’ – instead of the other way round.

  7. These days I can’t waste my time writing long essays trying to advise this government surely I regret ever voting for this ECL what an error it was ,never ever again I now see what voting emotionally can get you; in the next elections any candidate that does not attend debates ain’t getting my vote if you can’t articulate issues you ain’t getting my vote period

  8. Leadership is serious business, it’s not about giving speeches in a drunken stupor. If you have failed just resign on your own

  9. Looks like Mwanakatwe has realised that there are serious problems with this tax. She is now looking at someone to save face, MPs are a perfect face saver if at the proposed workshop they rejected it.
    But I have a solution for PF. The issue is not VAT/GST per se, the is IS too many taxes implemented too quickly in a short period of time. Revisit the tax on imports of copper concentrates, revisit the mineral royalty and implement like RB’s government. Do this Mwanakatwe dear, and you will see your VAT conundrum disappear. Something in those lines. They call it give and take.

    • HH told you so ……….

      Cader , just cower and join the red revolution instead of always being told

      …..We told you so.

  10. Looks like PF GRZ has got two swivel chairs for quick 360° policy u turns……one for lungu and one for mwanakatwe…

  11. You can not run a country`s finance minstry from a hotel bar just as you an not run a country in a plane.

  12. Clearly if the woman had morals she should have resigned like Terresa May of England. But because they take us zambians for fools she cannot do that because she knows no one will do anything about from the masses in Zambia until lungu maybe wakes up with a conscience someday close to elections time and point to a reason for the firing that happened way back and the foolish zambians will be happy and vote lungu back in state house. So the budget presented from the begining will have serious diviations and the projected income to be collected overstated by a wide margin. And who in their serious mind will implement something of this calibre in the third quarter of the year when businesses begin closing their books for the year. How much money has been lost in pushing forth something that…

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