ZRA IMPLORES ENERGY SUPPLIERS TO PASS ON BENEFITS FROM TAX INCENTIVES TO END USERS

Zambia Revenue Authority (ZRA) has called on suppliers of alternative energy equipment to pass on the benefits from tax incentives to end users by charging reasonable and affordable prices.

Government has given tax incentives on alternative energy products to cushion the negative impact that the pro-longed drought and subsequent load shedding has had on local businesses in the country.

ZRA Corporate Communications Manager, Oliver Nzala however observes that consumers have been subjected to high prices, making it difficult for ordinary citizens to access other power sources, despite the suppliers of solar energy equipment benefiting from the tax incentives.

Mr. Nzala states that government is promoting the importation and local production of solar equipment and the use of solar power as an alternative energy source, in order to deal with the power shortages owing to the effects of the drought.

He says the Authority believes that once suppliers are able to import solar and other energy equipment without paying customs or duty, the end users will also benefit through reduced prices.

Mr. Nzala points out that increased usage of solar products in the country will also increase chances of Zambia’s attainment of the Vision 2030 target of universal access to clean, dependable, and affordable energy by 2030.

In August 2024, ZRA launched the Tax Incentives and Exemptions Guide aimed at providing information to taxpayers and the general public on the various tax incentives offered across sectors of the economy.

The Authority has published a Tax Incentives Guide on its website with information on goods that do not attract Customs duty, Value Added Tax (VAT) or Excise duty and those that are completely exempted from any taxes.