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Excise Duty

1. What is Excise Duty?

Excise Duty is a tax on particular goods or products whether imported or produced domestically, imposed at any stage of production or distribution, by reference to weight, strength or quantity of the goods or products, or by reference to their value.

2. On what goods is Excise Duty levied?

  • Tobacco and manufactured tobacco substitutes such as Cigarettes
  • Clear Beer
  • Opaque Beer
  • Hydrocarbon oils such as petrol, diesel, fuel oils and Liquefied Petroleum Oils(LPG)
  • Spirits and Wines
  • Electrical energy
  • Air time
  • Cosmetics e. beauty and skin care products
  • Plastic Bags

3. Excise Duty Rates

The below excel sheet shows the excisable products, their duty rates and tax points;   

 4. Licensing

In order for any person to manufacture any of the goods set out in the Excise Tariff in quantities above the minimum quantities specified in the Customs and Excise Act,   he/she must apply to the Commissioner General for a license, with the exception of Mobile Phone service providers and Oil Marketing Companies.

However, any person may produce without a license and without payment of duty for domestic use but not for sale or dispose for profit to any other person, the following goods:

  • Fermented liquor, other than opaque beer, containing not more than 2% of alcohol by volume.
  • Tobacco in form of cigars, cigarettes, pipe tobacco or snuff when made from manufactured tobacco on which duty has been paid or from raw tobacco.
  • Opaque beer being not more than twenty-three decalitres in volume in any period of four consecutive days.

5. Who applies for license?

Any person manufacturing, distilling, mixing, brewing or packaging the following:

  1. Any portable liquid containing more than two per centum of alcohol by volume
  2. All types of spirits and wines
  3. Opaque beer in containers exceeding twenty-three dekalitres
  4. Cigarettes, cigarette tobacco, pipe tobacco, cigar and sniff
  5. Hydrocarbon oils and their by-products
  6. Electrical energy
  7. Cosmetics
  8. Plastic Carrier bags

6. How to apply

Application forms for License to Manufacture Goods subject to excise duty or surtax can be obtained from our Zambia Revenue Authority (ZRA) website www.zra.org.zm or visit Indirect Taxes - Tax Payer Services on the 1st floor of Revenue House or any other ZRA office near you.

  1. An applicant for a license should state and provide-
    • the nature of goods to be manufactured;
    • the process of manufacture;
    • the cost structure and selling price of the goods;
    • The premises and equipment to be used in manufacturing of excisable goods;
    • The business, its shareholding, assets, related businesses and accounting practices; and
    • Such other matters as the Commissioner General may require.
  2. Approval of application for a license is at the discretion of the Commissioner General.

7. Right to appeal

Any person whose application has been rejected or whose license has been revoked has the right to appeal to the Tax Appeals Tribunal.

8. Obligation of licensee

9. Suspension/Cancellation of License

  • Submit returns on or before the 15th day of the month following that month to which the return relates, and payment made within five days i.e by the 20th day.
  • Keep books of Accounts recorded in English language for inventory, production and sales.
  • Display the license at the manufacturing premises.
  • Application for excise license renewal should submitted to Zambia Revenue Authority before or on 30th September each year.

If a licensee fails to comply with the requirements of the law, the license may be suspended or cancelled.

10. Penalties

Late payment of tax and late submission of returns will attract interest at the prevailing Bank of Zambia rate plus (2%) per centum per annum and penalties of 1000 penalty fee units with an additional 1000 penalty fee units for each day the return is late respectively.

* All Dates are displayed in dd/mm/yyyy