International Journal of Advances in Scientific Research and Engineering-IJASRE

Modelling the Implementation of General Sales Tax System from the Current Vat Tax System to Increase Domestic Revenue and Economic Recovery in Zambia

Article Category: Management Science

DOI: 10.31695/IJASRE.2019.33241

Pages: 49-57

Author: Paul Bernandicto Ngosa


The significance and value of this study are to remind and alert the government of the republic of Zambia the potential of the sale tax system in comparison to the current value-added tax system in revenue generation which will stimulate economic development, capacity, ability, and self-sustenance of the nation and reduce over-dependence on debt financing. The usage of General Sales Tax framework from the current Value Added Tax System enhances Government revenue and exhort the policymakers that the general sales tax generously influence the monetary development and could fundamentally raise enough income for reimbursement of obligations and add to economic development in Zambia. However (Abdul-Khaliq 2017). The other finding is that VAT enlisted powers business incorporate VAT on every one of the sales. Therefore, the products and services seem progressively costly to customers and for that business who are not VAT enlisted, this expansion might be unwelcomed clients which sway government revenue contrarily. The VAT would support the advancement of a huge underground economy. Evading the VAT is a piece of the way of life. In many cases, residents sidestepping the VAT are not in any case mindful that they are getting away tax collection in light of the fact that their avoidance strategies have moved toward becoming a piece of their regular daily existences. It also consists of businesses engaging in schemes to secure larger refunds than those to which they are entitled, rather than evading it outright like in an underground economy. Regardless of how very much built, VATs are constantly powerless to tricks that enable organizations to guarantee bigger discounts than they are entitled.

Keyword: General Sales Tax System, Value Added Tax System, Government Domestic Revenue and Economic Recovery.

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