VAT rule 18 set to be amended
Zambia plans to amend VAT rule 18 which requires exporters to produce import certificates from destination countries because of feasibility issues. The Minister of Finance wrote to the President asking that the VAT rule be limited to export verification.
What is VAT rule 18? To cut a long story short, this rule is basically there to ascertain whether an export transaction has actually taken place. The particular section in whose enforcement has led to the accumulation of over $600m in VAT refunds payable is 1 (b) which says:
Ebola fears maroon DRC trucks at Kazungula on Zambia side
More than 80 copper and cobalt-laded trucks originating from the Democratic Republic of Congo (DRC) have been blocked from entering Botswana after cases of ebola were confirmed in the remote North-West of the country. Trucks originating from Zambia and other non-ebola affected countries remain free to enter. The block is “until further notice”. The ebola strain in DRC is not the same as the one affecting West Africa.
August inflation: 8%
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *