ZAM appeals for the revision of the customs and excise duty

The Zambia association of manufacturers has appealed of the revision of the customs and excise duty payable on certain products so as to accommodate sectoral issues for the benefit of all sectors.

Zam notes that the increase of duty on certain products will adversely affect other sub sectors that use the product in question such as inputs.

The association cited the crown plate which is used in the manufacturing of crown with the most user being Zambian breweries plc, which is currently at zero rate and is being proposed to be increased to 15%.

Zam explains that the products are currently been sourced from European union and chinese market adding that the challenge is that the action to increase tax will push manufacturing costs up and thereby making locally manufactured crowns less competitive.

The association said this yesterday when they made their submission to the parliamentary committee on estimates for the consideration of the customs and excise, the value added tax and the income tax amendment bills number 54, 55, and 56/2010 respectively.

Zam has since resubmitted that a further research be done on the gravity of the impact such changes will have and also try to find out the estimated costs of these products from companies that are earmarked to produce them locally so as to compare with the world market price and quality.

The association has expressed concern that the penalties to be paid out for a person liable to pay mineral royalty under the mines and mineral development act of 2008, are far much less than those to be paid out in other instances and yet the crime committed is the identical.

the concern is on section 100 of the principal amendment by the deletion of subsection clause one “penalty for incorrect returns”.

Meanwhile, zam has welcomed the decision by government to increase the threshold at whci an importation requires a bill entry from $500 to $2000 saying this will meaningfully contribute to businesses across borders by smes as well as enhance quick growth among them.

Ends//////////