There is need to sensitise business operators, especially contractors and suppliers, about the amended Value Added Tax (VAT) law on public procurement that came into force last year.

According to Paul Frobisher Mugambwa, a senior tax manager at PricewaterhouseCoopers (PwC), an advisory services firm, many businesses are not aware of the new VAT law.

Mugambwa said though the law was meant to ease pressure on government suppliers and contractors as far as declaring VAT every mid-month is concerned, many do not know it. 

"Many contractors say they are not paid by government agencies as per law.  

"In fact, it is news to them. If they knew about the amendment, they would be able to complain if they aren’t paid on time,” he said during PwC’s monthly Tax Academy workshop at Hotel des Milles Collines on Friday.

He argued that it is important for stakeholders to know about laws that affect them, saying that though implementation may be slow, awareness is crucial.

"That’s why we are urging firms’ tax consultants to sensitise their clients so that they are aware of any new developments in any laws that affect their business operations,” he said.