Government has suspended customs duty and Value Added Tax (VAT) on medical supplies used in the fight against Covid-19 for an initial period of 6 months among other additional measures.
Speaking during a press briefing at Mulungushi International Conference Center; aimed at mitigating the impact of Covid-19, Finance Minister Bwalya Ng’andu said government will extend the list of medical supplies that are not subject to import duty and VAT.
The complete list comprises 38 individual items which include testing equipment, protective garments, thermometers, disinfectants, sterilization products and other medical equipment such as ventilators and patient monitoring devices,Dr.Bwalya Ng’andu
And the Finance Minister disclosed that the ministry estimates the 2020 targeted revenue to fall short by at least K14.8 billion of the approved 2020 budget due to the Covid-19 pandemic.
Dr. Ng’andu further said the estimated impact does not include the revenue loss arising from the tax relief measures that were announced on March 26,2020.
The Finance Minister noted that government projects the peak period for the impact of Covid-19 on revenue to be between April and May.
Other additional measures the Ministry of Finance announced include Tax Relief on companies and businesses to help them manage their cash flaws .
The Zambia Revenue Authority(ZRA) will soon issue guidelines on the criteria on who qualifies for the waiver of tax penalties and interest,the period of relief and other related modalities,Dr. Bwalya Ng’andu
Dr.Ng’andu assured the nation of government’s commitment to continue assessing the situation and implement appropriate economic measures as the Covid-19 pandemic evolves.
Thomas Nyangulu Jr is a Business and Entertainment news writer with a passion for business and financial analysis across all sectors.His passion for music as a song-writer as well as creative arts also enclined him to entertainment news reporting and writing.He is currently pursuing a Bachelor's Degree in Media and Communication at the University of Zambia(UNZA) Great East Road Campus.