Zambia Revenue Authority – ZRA – Commissioner General, Kingsley Chanda says the Authority needs about 800 million Kwacha every month for VAT refunds.
Mr Chanda says the VAT system overtime became negative as Government started refunding more than it was collecting, hence the decision to change to sales Tax.
The ZRA Commissioner-General has noted that Zambia will be among 46 other countries who will be using the Sales Tax instead of the VAT.
Mr Chanda says the Country has 6 months in which to engage stakeholders before implementation of sales tax and that tax will be designed in a manner that does not negatively affect the production sector.
He has said there is also a need for a sales tax rate that will protect consumers.
Mr Chanda has advised critics of sales tax not to mislead citizens into thinking that it is retrogressive.
He says ZRA is currently reconciling all tax accounts and that the Authority will have a net position of all obligations that need to be settled.
Mr Chanda further says Government will pay any obligations it has towards any taxpayer within 2019.
He was speaking at a Zambia Institute for Policy Analysis and Research breakfast meeting on the analysis of the 2019 National Budget in Lusaka.