Press release
By
Misheck Kakonde
Historian and Cultural expert
Area Studies/ Comparative politics expert
04/10/2021
20 % TAX WAS IMPLEMENTED BY THE KANDOLO AND CASSAVA FORMER GOVERNMENT IN 2019
As Zambians we forget to fast, the Kandolo and cassava former government introduced In the 2019 budget 20% tax which has beared fruit recently.
The 2019 Budget Tax Changes Include among them EBITDA-Based Interest Restriction and Replacement of VAT with Sales Tax
To confirm this, I encourage a culture of reading among all of us and checking facts, truth be told the Zambia Revenue Authority has published an overview of the tax changes included as part of the 2019 Budget, which was delivered to the National Assembly on 28 September 2019. Some of the main tax changes include:
The introduction of a 30% of EBITDA interest deduction restriction, with an exception for businesses on the turnover tax system and those registered under the Banking and Financial Services Act, and the Insurance Act;
An increase in the withholding tax rate on dividends, interest, and branch profit remittance from 15% to 20% (harmonized with the current rate for commissions, management and consultancy fees, royalties, and contractors’ fees);
Mining tax regime changes, including:
An increase in the mineral royalty rates by 1.5% at all levels on the sliding scale and the introduction of a fourth tier at a rate of 10%; and
A change in the mineral royalty to a non-deductible final tax for income tax purposes;
The replacement of the 20% casino levy with a new tax regime on casino, lottery, betting, with rates as follows:
Casino live games – 20% of gross takings;
Casino machine games – 35% of gross takings;
Lottery winnings – 35% of net proceeds;
Betting – 10% of gross stakes; and
Gaming machines – ZMW 250 to 500 per machine per month;
The replacement of the current graduated turnover tax rate for small businesses with a flat 4% rate on turnover below ZMW 800,000 per year;
Transfer pricing compliance changes, including:
An extension of the statute of limitations for assessments resulting from a transfer pricing audit from six years to ten years;
An extension of the requirement to retain records from six years to ten years in respect of transfer pricing documentation; and
An increase in the penalty for non-compliance with the transfer pricing regulations from 10,000 penalty units (ZMW 3,000) to 80 million penalty units (ZMW 24,000,000); and
The replacement of the VAT regime with a sales tax regime.
The measures are to apply from 1 January 2019, except for the replacement of VAT with sales tax, which is expected from 1 April 2019.
Like I keep saying let us not judge the United party for National development based on mistakes of the former Kandolo and cassava party that is masquerading to regroup to loot at an industrial scale.
One other thing I would encourage some politicians playing to the gallery is to read the UPND manifesto and then speak from an informed position. Than speaking aimlessly like a headless chicken.
The PF left this 20% tax mess on we innocent Zambians. Remember they had an insatiable appetite to uproot in the field even if they did not plant, or let me say even if they did not have a storage house.
Pf was like a person from the village who comes to attend a funeral, all because the deceased left small children and a mother without an attorney they claim to get a television set even if he or she has no electricity, in their quest for property grabbing.
In short they where a group of demagogues to our democracy and we must laugh at them when they plan of regrouping, because they are the most comic party of the 21 C.
Currently the mess we are going through as Zambian’s is due to the kleptomaniac previous government. Let us not allow PF to lie through their propaganda and insatiable appetite for tribalism. They are History, Vinasila, as Pf the divorce with the Zambian population was nicely done through an amagedon.
Let us give Bally or his excellency president HAKAINDE HICHILEMA time to effect his Grand vision for Zambia it is the life of many Zambians that shall Change for good.
