EAZ welcomes replacement of VAT with Sales Tax

The Economics Association of Zambia (EAZ) has welcomed the abolition and replacement of the Value Added Tax (VAT) with the Non-Refundable Sales Tax.

EAZ president Lubinda Habaazoka says his association is happy with the introduction of the Non-Refundable Sales Tax proposed by the Finance Minister in the 2019 budget as it will close leakages in terms of VAT refunds.

Dr. Habaazoka has told QTV News that the EAZ does not think Zambia should have businesses counting on VAT refund as working capital.

He states that while his association is yet to fully study the 2019 national budget, it finds the budget to be two sided in a positive way.

Dr. Habaazoka says notwithstanding the fact that there are some measures that may be harsh for some businesses, the EAZ holds the view that the announced budget reflects how the Zambian economy is.

He says his association hopes that government will ensure that all the measures it has announced will be implemented.