The Zambia Sugar Company has dispelled assertions that it has been evading paying tax to government.
Zambia Sugar Managing Director Rabeeca Katowa said the sugar company has never failed to pay its tax obligations as stipulated by government.
She was speaking when he addressed journalists after the launch of the company’s US$82 million Nakambala Estate Sugar Refinery expansion project, yesterday.
Mrs Katowa said Zambia Sugar is a responsible entity that has always met and paid tax to the Zambian government to support national development.
She said her company presently has no special tax incentives or exemptions for it not to pay taxes to the Zambian government.
Mrs Katowa explained that her company has benefited from tax incentives as per Investment Promotion Agreements signed with government just like any other companies that have invested in the country.
A civil organisation , Action Aid Zambia is on record to have accused the sugar company to have evaded tax to the government of the Republic of Zambia.
Meanwhile Mrs Katowa disclosed that her company will scale up HIV/AIDS interventions at the company in light of the expected increase of staff who will be recruited under the expansion project of the Nakambala Estate Refinery.
Over 400 people will be directly employed under the US$82 million project and while hundreds are expected to be employed through spin off effects.
Mrs Katowa assured the local District Aids Task force who raised concern over the impact of the new project on the district’s aids prevalence.
We expect a dramatic change in the management of the company now that we have a Zambian at the of management. There is no smoke withoutg fire, it was the more reason Action AID Zambia came out very strongly on certain issues. The issue of Dividents should also be looked at seriously. The company has been paying out peanuts on the local investors in the company who bought shares at the time of its recapitalisation period.
So you expect change just because there is a Zambian at helm? Is Zambia Sugar 100% government owned ask your where his loyalties lie?
Its Tax avoidance schemes NOT evasion, there is a difference , and they must stop it . it is morally wrong, especially when you are operating in un developed economies.
Please dont insult our intelligence…Why dont you take Action Aid to court then for calling you “tax evaders” ?We all know you are heavily employing Tax avoidance practices at the expence of poor tax payer ….using legal means to pay the least amount of  possible. The only people to blame are our docile ZRA for not closes off these loop holes.
I wouldn’t call Zambia sugar a tax evader. They have consistently paid taxes as per tax law. You wanted foreign investors to help you run your run down companies. Let me remind u that foreign investors don’t force themselves in. They are invited and they don’t come to play games but to make money. Leave Zambia sugar alone and mind your business.
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‘Mrs Katowa explained that her company has benefited from tax incentives as per Investment Promotion Agreements signed with government.’
Just what are these Tax incentives that allow these investors to pay very little if any tax in Zambia?
All we ever see is a picture of Hon Chikwanda smiling sheepishly, receiving a large printed paper dubbed a cheque by media! Dividends apparently!
The obvious question is, why can we not grow our own sugar cane and manage our own plantations these days? I mean Soya and cane we can grow ourselves and get 100% of all revenue.
Mrs Katona is being economical with the truth. Action Aid said the company was avoiding tax, not evading it. And she is right. ZDA gives out tax incentives to companies to invest in the country. Anyone is free to apply, including Zambians. Unfortunately, most of us are too ignorant when it comes to company tax matters
Splaka…. you are correct. According to ZDA an Investor who invests not less than $500’000 receives 5 years tax free status from the time of investment. Any company / person would obviously take this offer up. Nobody likes to pay tax if they can help it. However I understand that the Holding Company that owns Zambian Sugar PLC, like most Zambian Large Scale Investors, trades internationally and makes its profits in Tax Free Havens meaning that the Source Country does not benefit. This is evident in Mining as well. It is not just a Zambian Problem, most countries are exploited in the same way. Its hard for Tax Inspectors to do anything about it as they only work within the country that they are based. That is my understanding of it…. but I may be wrong.
Madam Katowa, we want more community cooperate responsibility from Zambia Sugar. I beg you to show me what serious community contributions your Company has made in the areas it has been operating for many years. If you go to the mining areas, the evidence is clear. Even mobile service providers are doing better I think.
Zambia Sugar refuting the allegations, plain simplesue action Aid! Correct taxes must be paid for the beneift of mother Zambia period!
We need to find out who the auditors and the lawyers are for Zambia Sugar. These allegations are serious.
Zambia Sugar is listed on LuSE with 82% of shares held by illovo sugar, South African company, a subsidiary of British Foods.
Manipulation of their revenue can be done at international level which could lead to evasion of tax, even though it might seem they are conforming to the law here. I suggest Rabeeca Katowa watches what she tries to cover up
Actionaid never said Zambia sugar is EVADING Tax but Avoiding Tax, which is a moral issue and Mrs Katowa has just confirmed that the company is legally right BUT morally wrong by accepting that it enjoys tax incentives, which do not benefit Zambians.
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A lot of tax is paid in Zambia but it is not used prudently. And they then find a scapegoat to cover their mismanagement. Don’t forget ZRA owes mining companies over $600m. Why r u not talking abt it? It is sheer stup!dity and docility on the part of govt.
It appears you have a personal interest in these companies from the way you seem to want to defend the actions of these companies. What they are doing is cheating and people are asking that they do the right thing.