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?
3. Excise Duty Rates
The below excel sheet shows the excisable products, their duty rates and tax points;
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:
5. Who applies for license?
Any person manufacturing, distilling, mixing, brewing or packaging the following:
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.
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Any person whose application has been rejected or whose license has been revoked has the right to appeal to the Tax Appeals Tribunal.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
If a licensee fails to comply with the requirements of the law, the license may be suspended or cancelled.
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.