THE Zambia Revenue Authority (ZRA) has urged suppliers of alternative energy products to pass on the benefits of tax incentives to consumers by offering reasonable and affordable prices.
ZRA Corporate Communications Manager, Oliver Nzala said government has introduced tax incentives on alternative energy products to help mitigate the negative impact of the prolonged drought and subsequent load shedding on local businesses.
However, Mr Nzala expressed concern that, despite these tax incentives, the public continues to face high prices for solar energy equipment, making it difficult for ordinary citizens to access alternative sources of electricity.
“In August 2024, ZRA launched the Tax Incentives and Exemptions Guide, aimed at providing taxpayers and the general public with information on the various tax incentives available across different sectors of the economy.
As an Authority, we believe that when suppliers import solar and other energy equipment without paying customs duties or taxes, the end users, who are members of the public, should benefit through reduced prices,” he said.
Mr Nzala added that increased usage of solar products in the country would also boost Zambia’s chances of achieving its Vision 2030 target of universal access to clean, dependable, and affordable energy by 2030.
He said to address power shortages caused by the drought, the Zambian government is promoting the importation and local production of solar equipment, as well as the use of solar power as an alternative energy source.
“ZRA has published a Tax Incentives Guide on its website, which provides information on goods that are exempt from Customs duty, Value Added Tax (VAT), or Excise duty, and those that are completely exempt from any taxes,” Mr Nzala said.
Credit: Mwebantu