Minister of Finance Felix Mutati says there is need to address risks to the economy such as transit fraud, where goods destined for another country are offloaded in Zambia.
Mr. Mutati also says there is need to look into profit shifting through transfer pricing, where international companies are charging excessive management fees as a mechanism to reduce the tax component that they pay in a particular country.
Speaking when he officiated at the 6th African Fiscal Forum in Lusaka themed ‘Fiscal Policy in an Evolving World’, the Minister of Finance said African countries should share and minimize impact of these threats so as not to erode consumption taxes such as value Added Tax – VAT.
Mr. Mutati has also noted that Moodys’ elevation of Zambia’s economy from negative to stable is critical in boosting investor confidence as it is a clear indication that the Country’s economy is stable and will continue to grow.
Meanwhile, European Union Head of Delegation in Zambia and COMESA, Alessandro Mariani said infrastructure investment needs and social measures for the poorest in African countries are putting extreme pressures on budgets.
Mr. Mariani further noted that raising revenue collection, improving governance, reinforcing management capacities and spending better will help address the challenges.
All talk and no action from Mutati. when did transfer pricing start for you to start planning combating it now? The practice of transfer pricing started a long time ago and you’ve heard about it for sometime now but you’ve done nothing and you’re still just talking about it. The truth is that you just know its definition and you’ve no capacity to devise ways of stopping transfer pricing. You just talk so that people know how well informed you’re but when you reach your office, you’ll through the paper and forget about it. You think we don’t know you? We know those tactics. When going to present something before an audience, you start researching so that you can mention all the words used in economics to prove that you’re just as competent as an economist.
He forgets the fraud of $42 million fire engines and non delivery of ambulances already paid for. What is wrong with these people?
A GRZ lead by a very corrupt individual ……..lungu is so corrupt that it does not bother him when he is referred to as a corrupt theif.
Also look into the Panama and Paradise Papers I am sure some corrupt and greedy chaps will be smoked out.
Yes, there is need to stop those vices where does the buck start and stop? I tend to agree with @ Davis Mwila above. Rhetoric, rhetoric and rhetoric!