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Draft Logistics and Transport - Ndola 2023 National Budget Submission
Draft Logistics and Transport - Ndola 2023 National Budget Submission
2. Withholding As per the Section 81A of the Income Tax Act, all - Propose to remove the The Zambian transporters and
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Sector/Policy Disadvantages, Shortcomings, Weaknesses or Proposed Policies or Measures Expected Implications or Impact of
Area of Interest Challenges the Proposed Policies or Measures
Tax on for Zambian entities are liable to withhold a part of Withholding tax on forwarders will be able to affiliate
international the payment due to be paid for non-resident international freight on services and subcontract with foreign
freight contractors and remit the withheld amount to procured by Zambian transporters with higher capacities
(Tax Zambia Revenue Authority. companies as per the Section to move freight and provide the
Proposal) As non-resident contractors to foreign 81A of the Income Tax Act end to end services which are in
companies, the payments received by Zambian (Example: South Africa and very high demand.
contractors are now also subject to a deduction Democratic Republic of Congo).
of similar withholding tax (WHT) at source. - Propose to engage the Increase in revenues for Zambian
neighbouring states in the companies will also strengthen the
As a result of the above, Zambian transporters region to waive off the forex reserves in our country with
and forwarders are losing business to non- withholding tax introduced by increased business opportunities.
resident service providers as they are unable to their regulatory body where
provide end to end service to foreign clients. To applicable (Example:
provide the end to end services Zambian Democratic Republic of Congo).
transporters and forwarders need to engage
non-resident freight providers and the payments
to them shall be subject to withholding tax.
3.
4. Bonded As per Chapter 322 of the Customs and We propose introduction of This will see growth in the
Warehouse Excise Act Part VI on Bonded Warehousing has Intermodal Transhipment hubs transhipment industry that will see
Module limitation on the operations of the bonded to support the Government the stakeholder industries grow
warehouse. Which doesn’t support the Vision of taking advantage of such as
intermodal transhipment model for transit cargo Zambia being a landlocked Zambian transporters will be able to
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Sector/Policy Disadvantages, Shortcomings, Weaknesses or Proposed Policies or Measures Expected Implications or Impact of
Area of Interest Challenges the Proposed Policies or Measures
via in Country Country. The private sector has participate in the movement of
invested a lot in this sector, but cargo in and out of the
we need a flexible transhipment hub.
transhipment system that can Equipment hiring companies will
operate 24 hours under also benefit as most transit cargo
customs control. will need to be handled.
Insurance and Banks will be able to
put up bonds to support the hubs.
The clearing agents will increase
volume of customs clearances.
Overall, this will increase
employment for the Country
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Sector/Policy Disadvantages, Shortcomings, Weaknesses or Proposed Policies or Measures Expected Implications or Impact of
Area of Interest Challenges the Proposed Policies or Measures
domestic taxes for the Government
5. Insurance - This new SI 105 of 2022 dictates to have We propose total scrap off this Local Companies
Statutory clearing agents to up 100% collateral against the SI as it will close a lot of will face
Instrument bonds with Zambia Revenue Authority Zambian Clearing challenges to raise
105 of 2022 Companies.With the current 100% collateral
bond structure companies are
and therefore will
struggling to raise
be eliminated.
bonds ,introducing this SI will
mean a decline to Zambian Management of
Companies transit cargo will
be affected as the
bonds will not be
enough to cover
available cargo.
This will leave
multinational
companies with a
monopoly of
handling most of
the transit cargo.
International Companies will get
their bonds through the banks
and therefore depriving the local
insurance Companies the much-
needed revenue. Point to note is
that majority of the banks are not
locally owned
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