The Private Sector Development Association (PSDA) has observed that amendment of Rule 18 of the Value Added Tax Rules of 1997 will not substantially affect Zambia.
On Tuesday, 2nd September, 2014 Zambia Revenue Authority (ZRA) Commissioner General Berlin Msiska announced the amendment of the VAT Rules with effect from 8th September, 2014.
PSDA Chairperson Yusuf Dodia has told Qfm news that with such an amendment, it is possible for an exporter to claim the export of products to a country such as Switzerland when in fact the goods are destined for China as there will be no need to show proof of the destination of the goods in reality.
Mr Dodia says it is for this reason that he also thinks, for example, that the companies that are buying the country’s copper exports are not the ones using the mineral, stating that documentary evidence shows that 80 percent of the copper goes to Europe when the reality on the ground is that it actually goes to the far East.
Mr Dodia however states that his association is of the view that as a source of additional information, it is important that the country knows who is consuming its mineral exports.
…..please ba LT, don’t assume we all know the amendment done…no statement refers to the actual amendment or the earlier rule………going by Dodias’s response, it looks like the amendment is once again in favour of the mines….why kanshi..??
Good Point. Its important media houses simplify some of these statement so that my uncle in lundazi understands also.( the more reason my brothers and sisters cant insult each other on this topic) Now coming to the topic, i echo Dodia, s fear, Will have alot of claim even when they are selling to thier sister concerns thereby govt not benefiting anything. i mean how does government get any thing if Mopani is selling the copper to some sister concern. it will jst be a bank to keep the money so that someone claims it again. How about introducing windfall tax with this amendment. bonse tunfwe bwino.
Dodia speak for Zambians private enterprenuers not your indian scamming cousins at KCM in hope of being awarded contracts. That’s cheap and unpatriotic! Yes you may need business to survive dont sell your soul to the devil for a few pieces of silver.
The committees on fiscal affairs of our country should strengthen the analytical thinking on domestic tax policy design like Mr Dodia has observed. We need to have high quality analysis if we are to enshrine and seal cases of tax avoidance and evasion mopping out any open room for rebates
Removing complexity and being simple in interpretations of the vat rules will help also to avoid evasion and fraud around the same especially where application may involve different jurisdiction
Leading and not lagging in understanding the industrial sector and markets together with domiciles of those multinationals will help to insulate
Above all creating a research department with a full and well refined financial reporting service/DATA of financials on those partners will help to stand firm and protect to increase revenues taking advantage of the international comparatives both in VAT rules and where accounting rules didn’t conform to Zambia or IFRS.
Create a Data base to follow entities