By 
The Tourism Council of Zambia (TCZ) has called on the Zambia Revenue Authority (ZRA) to suspend the implementation of the Smart Invoicing System.
Yusuf Zumula, the TCZ Chairperson, stated that the system had constraints and gaps that were clearly not compatible with the tourism, hospitality and travel sectors.
Speaking at a media briefing at Protea Hotel in Lusaka on Friday, Zumula cited complexities and the nature of transactions within the tourism supply chain as significant concerns.
Based on the current deadline, the Smart Invoicing System was set to go live on September 30, 2024.
“As TCZ, we do appreciate the good intentions of government to try and streamline tax administration through the Smart Invoicing System being implemented by ZRA,” Zumula said.
However, he emphasized that the system was full of gaps and unsuitable for use in the tourism sector, warning that it would undoubtedly increase the cost of doing business for the industry.
He noted that the tourism and travel sector was still recovering from the adverse effects of COVID-19, inflation, an unstable foreign exchange regime and the current energy crisis.
“Furthermore, the Smart Invoicing is associated with huge compliance costs of setting up the system, along with harsh penalties for any slight non-compliance issues for VAT-registered businesses,” he added.
Zumula claimed during a meeting with stakeholders that ZRA could not provide clarity on many of the identified constraints within the Smart Invoicing System, further underscoring its unsuitability for the tourism sector.
He reiterated that the numerous gaps, lack of clarity on inherent constraints, the current economic environment and disruptions to the travel and tourism sector make the Smart Invoicing System difficult to implement.
“The objective of this briefing is to request the government to suspend the implementation of the Smart Invoicing for the Hospitality, Travel, and Tourism sector,” Zumula requested.
He called for the system to be put on hold to avoid disruptions and possible cancellations of bookings for sold packages, as it lacked flexibility in invoicing.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments