Zambia scraps plan to replace VAT with sales tax

Zambia will not replace its value$-$added tax $($VAT$)$ with a non$-$refundable sales tax, Finance Minister Bwalya Ng'andu said on Friday, after the proposal met substantial opposition from businesses.

"Government has decided to maintain the Value Added Tax, but address the compliance and administrative challenges," Ng'andu said in a budget speech.

Zambia's mining industry fiercely opposes the tax $-$ just one sore point between the government and the economy's most important sector.

Based on the article linked above do you think that Zambia should replace the VAT tax with a national sales tax? Discuss the difficulties inherent in collecting the VAT tax compared to the simplicity of a sales tax. What are the pros and cons of each system?