Posted by Benson on February 22, 2017


Government ministers comprising Minister of Finance, Minister of Agriculture and Minister of Commerce Trade and Industry met officials from TAZ and ZNFU to discuss the issue of exempting VAT on green leaf tobacco. The private sector informed the three Ministers that the VAT component made the Zambian tobacco uncompetitive compared to regional competitors such as Malawi, Zimbabwe and Tanzania where the crop is exempt from VAT.


After some discussion, the Ministers agreed that tobacco should be exempt from VAT in the 2018 national budget and that government would work out an interim arrangement to offset VAT during the 2017 marketing season.


The meeting took place on Monday 13th February 2017 at Ministry of Finance, and was also attended by ZRA Commissioner General accompanied his senior officials.