ZRA issues Gazette Notice to amend Rule 18 of VAT

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ZAMBIA Revenue Authority (ZRA) Commissioner General Berlin Msiska has issued a Gazette Notice to effect amendments to Rule 18 of the Value Added Tax (VAT) Act providing for conditions of zero-rating of exports that usually places mining companies in an untenable VAT refund position.
The Statutory Instrument (SI) was signed on Thursday, February 19, 2015 and published in the Government Gazette the following day.
This is according to a statement by State House special assistant to the President for Press and public relations Amos Chanda.
Mr Chanda announced that with regard to the consultations over the new mineral royalty tax regime, Mr Msiska had opened negotiations with mining companies to explore the relief entitlements within the provisions of the law.
This was the directive from President Edgar Lungu.
Under the Mines and Minerals Development Act, there is a provision for the Mineral Royalty Deferment Scheme.
“The ZRA Commissioner-General may, on application by a holder of a mining right, defer payment of royalty due from the holder upon meeting set conditions.
“So far, a number of mines have applied for consideration under the deferment scheme and Government advised the mining companies to stay within the law,” Mr Chanda said.
Mr Chanda said President Lungu has assured that the progressive steps that have followed the negotiations would lead to further positive outcomes that should settle the matter in the coming weeks.
Under the chairmanship of President Lungu, the consultations have included Minister of Finance Alexander Chikwanda, Mines Minister Christopher Yaluma, Commerce Minister Margret Mwanakatwe, Justice Minister Ngosa Simbyakula and ZRA officials.

 

Times of Zambia

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