Zambia’s Finance Minister, Margaret Mwanakatwe, announced during the 2019 budget presentation last year that government will abolish Value Added Tax (VAT) and replace it with a non-refundable sales tax in April 2019.
Although yet to be approved by the Cabinet, the new Good and Services Tax (GST) is set to take effect from April 1, 2019. It is expected that the draft legal framework for it will be approved before the end of March 2019.
Ms. Mwanakatwe has told journalists in Lusaka that once cabinet approves the document, it will be circulated widely for public analysis and feedback before it is presented to parliament for debate and consideration.
Ms. Mwanakatwe has emphasized that the introduction of the Good and Services Tax (GST) will significantly contribute towards improving cash retention, help government boost revenue and bring down debt.