Daily Tax Report ®

Zambia Tax Revenue to Fall 3b Kwacha on Removal of VAT on Fuel

Jan. 13, 2021, 10:07 AM

“The zero-rating on petrol and diesel will cost government 3 billion kwacha in lost taxes,” Zambia Revenue Authority Commissioner-General Kingsley Chanda says in comments broadcast on state-owned ZNBC TV.

  • Tax authority’s net collection was 57.7 billion kwacha in 2020
  • Outstanding VAT refund claims rose to 16.6 billion kwacha by end-2020
    • “When we net off the assessments owed by mining companies amounting to 7.1 billion kwacha, the net VAT refund exposure stands at 9.5 billion kwacha”: Chanda
  • NOTE: Finance ministry removed a 16% value-added tax on gasoline and diesel prices, effective Jan. 1
  • NOTE: Jan. 10, Zambia’s Fuel Subsidy Boost Hurts...

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