EAZ President Appears Before The Parliamentary Committee For Budgets, Trade And Labour Issues
May 15, 2019, Lusaka
Today the Economics Association of Zambia team appeared before the parliamentary committee for budgets, trade and labour issues chaired by former Finance Minister Dr Situmbeko Musokotwane to present its views on the general sales tax (GST). The team was represented by its President Dr Lubinda Haabazooka, Vice President - Dr Austin Mwange, National Secretary - Mutisunge Zulu, Deputy National Secretary- Rita Mkandawire, Board Member in charge of Parastatals - Benson Mwileli and Executive Director - Mirriam Nachilima.
The Association gave its views of what sales tax will mean to the Zambian economy, citing the need to address the gaps that the proposed tax will pose. The Association suggested a lower tax rate across the value chain of 4-5% to curb the cascading effects of the tax which it advised was potentially inflationary. The EAZ said this tax would allow the state to collect more in the first year, but if not correctly administered could adversely impact the private sector.
The Association, however, appreciated the credit side if the GST which will ease the burden on the government from having to refund the mines as was in the value-added tax system.
Asked what other options could have been viable if the value-added tax system was reconsidered, the Association advised the need for change in the tax law to halt refunds on VAT and introduction of stimulus through a lower corporation tax for those involved in value addition.
CAPTION: Dr Lubinda Haabazoka pictured with his team when he appeared before the parliamentary committee for budgets, trade and labour issues. Picture Courtesy of the EAZ Media Team