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LUSAKA. — The Zambian government has decided to revoke tax exemption for NGOs and other public benefit organisations due to rampant abuse of the exemption, the Ministry of Finance said yesterday. Minister of Finance Alexander Chikwanda has since issued a statutory instrument on the move, saying that all vehicles and spare parts for vehicles imported by NGOs will be required to pay tax. Other goods which will no longer qualify for tax exemption under the Public Benefit Scheme include wines, other alcoholic beverages and all household goods except beds and mattresses as well as linen, kitchen equipment, and tobacco products.
Ministry of Finance Public Relations Office Chileshe Kandeta said in a statement that the ministry was concerned that some of the organisations have been profiting from the tax exemption by selling these goods without getting approval from the country’s tax collecting agency.
The ministry has warned that any organisation violates the law will face sanctions. The tax exemption was provided in the 2009 budget under the Public Benefit Scheme and was meant to help organisations that provide charitable services to the public.
During the presentation of the 2014 national budget, the finance minister said the government has undertaken a review of tax incentive regimes in order to rationalise tax incentives as part of the tax reform process. — Xinhua.
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