ZICA opposes timing for sale tax implementation

The Zambia Institute of Chartered Accountants (ZICA) says the timing for the implementation of the sales tax by government is wrong.

Sales tax is expected to be implemented by 1st July this year.

ZICA Taxation Committee Chairman Julius Zyambo has advised government to first address the issues affecting value added tax (vat) before implementing sales tax.

Speaking at meeting to discuss the sales tax bill of 2019 and employment act number 3 of 2019, Mr. Zyambo says while the institute is in support of any policy government formulates, the timing for the implementation of the sales tax is not enough.

He says there is need for government to address all concerns raised by different stakeholders so as to create a conducive environment for the private sector to do business in the country.

And Mr. Zyambo has expressed fear that once the sales tax is implemented, there is likely to be a reduction in the Pay As You Earn (PAYE) which will result in job losses as well as see a reduction in income tax because companies will take an extra cost.

Speaking at the same meeting, ZRA Commissioner for Finance Bridget Muyenga has declared zra ready to implement the sales tax by 1st July.

And ZRA Commissioner Domestic Taxes Moses Shuko says sales tax is a progressive tax as it will protect both the business community and the interest of Zambians.

Meanwhile Labour Commissioner Chanda Kaziya has refuted claims by some stakeholders that the new employment act will disadvantage women from getting jobs due to certain requirements.

Mr. Kaziya says all contracts of employment will be governed by the provisions of the act.

He says the act makes it mandatory for all contracts exceeding 6 months to be in writing and provides for what is to be contained therein.

 


News source: QFM Radio

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