Buyers challenge levy

Japan Tobacco International Leaf Zambia and Alliance One Zambia have filed a notice in the Lusaka High Court principal registry seeking leave to start judicial review proceedings over a levy placed on tobacco sales that was allegedly retroactive and illegal, according to a story in The Mast, relayed by the TMA.

The sales in question were said to have been completed before the effective date of Statutory Instrument No 67.

The companies want to challenge the decision of the Tobacco Board of Zambia (TBZ) to collect the tobacco levy from them.

They are seeking to ask the court to rule that a minister’s decision to demand the two percent levy from them on completed purchases retroactively was illegal.

The applicants argue that the minister cannot demand payments of the levy for purchases that were made prior to August 31, 2018.

The two firms are challenging too the minister’s decision to issue SI 84 and 85 of 2018 which restrict their operating tobacco sales floors. That decision they allege went beyond the powers granted under the Tobacco Act.

The companies are asking for an order prohibiting the minister from implementing or enforcing SI 84 and 85.