Zambia Revenue Authority has disclosed that it is still withholding K2.4 billion of the K5 billion owed to mining companies in Value Added Tax refunds because the correct documentation has not been provided.
ZRA Commissioner General Kingsley Chanda said Government began paying up to K800 million a month in VAT refunds to mining companies in June.
He said this during a news conference held in Lusaka.
Mr Chanda said Government is aiming to put an end to a long running dispute in which firms were owed about $700 million.
He however said that some funds are being withheld because companies have not provided documents showing the export destination.
The ZRA Commissioner General also disclosed that the tax authority lost K1 billion in expected tax collection because of low copper prices and the depreciation of the kwacha this year which hit mining companies.
He said ZRA has made progress in collecting revenue despite not receiving 1-billion Kwacha in income tax from the mines owing to economic challenges following a slump in copper prices.
Mr. Chanda said he is optimistic that in 2017, ZRA will meet its tax obligations following some changes to the tax system in the national budget.
Meanwhile, ZRA says it is pursuing over 72,000 vehicles that do not appear in its asycuda system.
ZRA Commissioner General Kingsley Chanda said preliminary database reconciliation and identification of wanted vehicles by the authority and Road Transport and Safety Agency as at 9th December 2016 indicate that 72- thousand 8-hundred and 42 vehicles have no matching records.
He said the over 72,000 vehicles, which is 19.1 percent of the registered vehicles include high value automobiles which have not taken advantage of the amnesty to normalise the situation.
Mr. Chanda adds that the motor vehicle amnesty to normalise the situation is still underway and will end on December 31st.
He has appealed to motorists with vehicles that were not cleared with ZRA to do so as they will not be fined or pay interest but just normal tax.
Mr. Chanda also revealed that the Commission has received only 146 applications from 8 stations for the amnesty from which it has collected K1.4 million.
He has however stated that ZRA is expected to collect K3.6 million from the exercise as pending assessments are in excess of K2.2 million.
The ZRA Commissioner General has since warned those who will not adhere to the amnesty that their vehicles will be impounded and forfeited to the state.
Mr. Chanda said ZRA will come up with the final “most wanted list” after December 31st 2016.