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The Zambia Revenue Authority (ZRA) is urging suppliers of alternative energy products to pass on tax incentives to consumers by reducing prices.
This appeal comes amid public concerns that despite benefiting from tax breaks, the high prices of solar energy equipment are making it difficult for many Zambians to access affordable electricity sources.
Oliver Nzala, Manager of ZRA Corporate Communications, issued a statement on Tuesday stated that suppliers should lower prices to reflect the tax benefits they receive.
“To cushion the negative impact that the prolonged drought and subsequent load shedding have had on local businesses, the government of the Republic of Zambia has provided tax incentives for alternative energy products,” Nzala said.
Nzala explained that the government’s intention was to make solar and other energy equipment more accessible by eliminating customs and duty fees for imports.
“As an Authority, we believe that once suppliers are able to import solar and other energy equipment without paying customs or duty, the end users, who are members of the general public, will also benefit through reduced prices,” he noted.
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The ZRA indicated that they were actively promoting the use of solar power as an alternative energy source to address power shortages exacerbated by the drought.
It stated that in August 2024, ZRA launched the Tax Incentives and Exemptions Guide, which provided information on various tax incentives available across different sectors.
“Increased usage of solar products in the country will also improve the chances of achieving the Vision 2030 target of universal access to clean, dependable, and affordable energy by 2030,” Nzala added.
He encouraged the public to consult the Tax Incentives Guide available on the ZRA website for detailed information on goods exempt from customs duty, Value Added Tax (VAT) and Excise duty.
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