Following the introduction of the 5% surtax on selected goods manufactured locally to promote local sourcing of inputs and the growth of Industry in 2016, ZAM advocated for the removal of specific product lines from the Customs and Excise Act. The removal was warranted by the fact that the products included were inputs into the manufacturing process that were not available locally and as such were subsequently being charged the 5% tax and adding to the cost of doing business for manufacturers.
In 2017, following ZAM’s National Budget Submission, amendments to the Customs and Excise Act included Extension of the 5% Surtax List to further facilitate the growth of local sourcing of locally manufactured products and inputs. Additionally, amendments included the removal of various tariff lines from the surtax that were being erroneously charged on inputs not manufactured in Zambia but used in manufacturing processes. The list below details the items that were removed from the surtax list;
| Product | HS Code | Used in Manufacture of | Status |
| Pu Unit Sole | 6406.20.00 | Leather Industry Products | EXEMPT |
| Midsole Plates | 6406.99.00 | Leather Industry Products | EXEMPT |
| Needles | 7319.90.00 | Leather Industry Products | EXEMPT |
| Liquid Glucose | 1702.40.00 | Agro-Products | EXEMPT |
| Infant Milk Powder& Infant Milk Powder (Less Than 1.5 % Fat Content) | 0402.10.10 | Infant Foods | EXEMPT |
| Maize Corn Starch | 1108.12.00 | Agro-Products | EXEMPT |
The Secretariat continues to lobby for the removal of other inputs that were erroneously included on the Surtax list including steel products and signage materials, as well as agro-processing inputs. Members are encouraged to submit the HS Codes for the products they are still erroneously incurring costs on to facilitate the suspension of the Surtax.
