The Zambia Association of Manufacturers ZAM has called on the Zambian government to expedite the process of Value Added Tax (VAT) refunds, for manufacturers who consistently comply with tax regulations.
During the 2024 pre-budget meeting held in Lusaka, ZAM President Ashu Sagar emphasized the importance of establishing a scorecard system.
Mr. Sagar said the system would prioritize compliant manufacturers for VAT refunds and other tax-related reimbursements.
He called for a reduction in Income Tax rates for manufacturers serving both domestic and export markets from the current 20% and 10%, to 16% and 14% respectively.
“The move is to alleviate the burden of value-added goods and services and to prevent the accumulation of refund claims,” said Mr. Sagar in a statement.
The ZAM President also recommended an extension of the timeframe for presenting proof of exportation under VAT Rule 18 from the current 3 to 6 months.
He also called for an increase in the Turnover Tax (TOT) threshold from K800,000 to align with the Micro, Small, and Medium Enterprises (MSME) Classification.
This is contained in a statement issued to RCV News by ZAM Chief Executive Officer, Muntanga Lindunda.
By Bibiana Lambart
