INTERNATIONAL – Zambia will delay implementing a new sales tax until January 2020 to allow for further refinement of the law, Finance Minister Bwalya Ng’andu said on Friday.
Zambia, Africa’s second-largest copper producer, plans to replace an existing value-added tax with a non-refundable sales tax, but the move has met substantial opposition from businesses.
Addressing parliament, Ng’andu said he was withdrawing the draft law and would re-introduce it in the next session in September, the ministry of finance said in a statement.
“This will allow for sufficient time to address the concerns in the Sales Tax Bill that stakeholders raised,” Ng’andu said.
Zambia’s mining industry fiercely opposes the tax - just one sore point between the government and the economy’s most important sector.