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Zambia Revenue Authority Rolls Out Tax Incentives to Empower Persons with Disabilities

The Zambia Revenue Authority (ZRA) is taking a significant step towards fostering inclusivity by introducing comprehensive tax incentives for persons living with disabilities. 

In an official statement, Oliver Nzala, the ZRA Corporate Communications Manager, expressed the Authority’s commitment to ensuring equal participation in the country’s social and economic activities.

Mr. Nzala highlighted that existing legislation offers various tax incentives, extending to both employers of persons with disabilities and the individuals themselves. 

Under the provisions of the Income Tax Act, employers who hire individuals with disabilities are entitled to a generous allowance of 2,000 kwacha for each full-time employee with a disability. This allowance can be claimed as a deduction in the income tax return submitted at the end of the charge year.

Additionally, the Act allows individuals or organizations engaged in public benefit activities to apply for Public Benefit Organization (PBO) status. This status provides privileges, including a 15% reduction in income tax, for PBOs conducting business to generate extra income to support their activities. 

PBOs focusing on welfare, humanitarian efforts, healthcare, land, housing, education, and training facilities for disabled persons are encouraged to apply.

Mr. Nzala emphasized that disabled persons registered with the Zambia Agency for Persons with Disabilities (ZAPD) are entitled to a monthly tax credit of K600, totaling K7200 annually. 

This tax credit is deducted from the monthly tax amount, facilitating financial relief. Individuals not receiving this credit through payroll can submit a claim through the tax refund process at the end of the charge year.

Encouraging the public to make the most of these incentives, Mr. Nzala urged consideration of the exemption or zero-rating of Value Added Tax (VAT) on specific articles designed for use by persons with disabilities. 

This includes essential items such as wheelchairs, crutches, hearing and vision aids, artificial limbs, and Braille material.

Furthermore, Mr. Nzala noted that additional tax incentives for persons living with disabilities involve the cancellation of duty paid or payable on a modified motor vehicle imported by a registered person with a disability. However, this entitlement is granted once every five years.

As the ZRA spearheads these initiatives, he emphasized that it aims to create an environment that not only supports the well-being of persons with disabilities but also actively encourages their economic participation.

He further encouraged the public to explore and leverage these incentives to contribute to a more inclusive and supportive society.

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