Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

May 7, 2019

Zambia publishes proposed Sales Tax exemption list

On 3 May 2019, the Zambia Revenue Authority (ZRA) published a proposed schedule of exemptions from Sales Tax, which would become effective on 1 July 2019. The purpose of this list is to mitigate against the cascading effect of the effective Sales Tax rate.

The Sales Tax will replace the current Value Added Tax Act.


Under the proposed Sales Tax Bill of 2019, the Minister is empowered to reduce the rate applicable to a taxable supply by Statutory Instrument. In addition, the Minister is empowered to provide exemptions to Sales Tax by means of Statutory Instrument for:

  • Capital goods
  • Inputs
  • Designated basic and essential goods or services
  • Designated suppliers to privileged persons
  • Exports

The proposed exemption schedule is based on the Harmonized Commodity Description and Coding System (HS codes) for various products as provided in the Customs and Excise Act. The exemptions are focused on items that are presently subject to Customs Duty rates of between 0% to 5%.

Taxpayers should review the schedule and pay specific attention to the HS codes on the schedule and compare it with their inputs and products. The Minister has indicated that further submissions with respect to exemptions may still be made as the Bill undergoes consultation.

For additional information with respect to this Alert, please contact the following:

EY Advisory Services Limited, Lusaka
  • Patrick Mawire |
Ernst & Young Advisory Services (Pty) Ltd., Africa ITS Leader, Johannesburg
  • Marius Leivestad |
Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London
  • Rendani Neluvhalani |
  • Byron Thomas |
Ernst & Young LLP (United States), Pan African Tax Desk, New York
  • Dele A. Olaogun | 



The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more