The Centre for Trade Policy and Development (CTPD) has commended the Zambia Revenue Authority (ZRA) for exposing the tax evasion scam worth K76.5 billion in the extractive sector.
The center has also welcomed intentions by the authority to undertake an extensive audit of mining companies.
CTPD Executive Director Isaac Mwaipopo says Zambia is a country rich in mineral wealth, but notes that this wealth has not translated into meaningful social and economic development for the people.
Mr. Mwaipopo says poverty, inequality and debt still remain very high and therefore expectations around Domestic Revenue Mobilization remain unquestionably top priority for a struggling country like Zambia.
He notes that while there may be challenges in the collection of taxes and tax compliance especially in the informal sector, it is important that every person and sector pays a fair share of tax, and the mining sector is not an exception.
Mr. Mwaipopo further notes that despite government putting in place measures such as setting up the Transfer Pricing Unit, Mineral Value Chain Project and Mineral Production Support Project and the Extractive Industry Transparency Initiative (EITI), it is becoming more evident that revenues collected by government are not a true reflection of the country’s full potential to mobilize resources locally.
EXPOSE MORE …..
THERE MANY MORE CHARACTERS NOT PAYING TAXES
INDIAN BUSINESSMEN ….ARE MOST CULPRITS…
Mmembe …what happened to him ????
See how Indians now are trying to be buddy buddy with Africa? That is because China and Africa, the ancient trading partners are waking up again. We shall export to them in still.
These Guys steal because of our own stupidity. They have Zambian accounts who even help to evade TAX thinking they are best workers yet killing their own country. For this to End, the Zambian government has to change the game. Play it differently.
If Zambia is to see any meaningful development, we need to have meaningful control over these foreign companies. Get serious and get tough. Most of these foreign companies are nothing more than organized gangs, whose main aim is to loot African countries. They neither respect the hosting countries laws, nor care about it’s people. Hire professional tax auditors and investigators, if you can’t do the job yourselves. Pay attention to what these so called investors are doing in the country. Learn from Mugufuli. Obviously some politicians don’t care whether these foreign gangs loot the country’s resources or not. They’re paid to look the other way by these gangs. We need patriotic Zambians who love their country, and genuinely care about what happens to it. If you don’t pay attention…
to them, a few years from now, Zambia will be left with empty gaping holes as a reminder that we once had minerals in the ground, with nothing to show for it. Wake up! The country is being looted as we speak!!!
How do you commend someone for doing their job…I mean those guys are highly and trained abroad at great cost to the taxpayer and you useless groups feel the need to make a statement.
You want someone to be commended for doing somebody’s job?
Babwera ba mamos!
Good job ZRA but please be lenient to struggling Zambian businesses until the economy picks up
Mr Mwaipopo, is looked at the revenue side, as if it is mutually exclusive, as the cause of the economic pain. As much as the tax gap is a problem, but the assessment of K76.5 billion is unrealistic, absurd and too remote. In addition, it has no bases and it is not probable to collect because these companies when they made these investments they were contracts and tax holidays agreements.
The real problem, which many a blogger has been singing about on this platform, is reckless spending. Instead of allocating the scarce resources to productive sectors, the PF have deliberately allocated this money into their pockets to fund unsustainable life styles of politicians and top government officials.
No smoke without fire : this tells me that ZRA was being incompetent ,negligent and ill equipped to have Zambia reap its fair share.
Maybe an area where the Commonwealth dialogue negotiators can assist rather than political interfering? oh…forgot it’s not in their interest and not part of the mission as missionaries!
Focus on these big multinational firms be they mining, manufacturing etc and give local Small and Medium Enterprises (SMEs) a chance to grow, the business environment in Zambia is tricky, it is very hard and close to impossible for small business to get any form of financial support from financial institutions like banks etc SMEs in most countries are the main employer so if you tax them too much you will discourage the growth of that sector which will result in idle youth a ticking time bomb!
Criminals cover their tracks and this is what was happening. ZRA were duped and this happens everywhere believe me. But even if the tax is collected, what difference will it make if spending money carelessly continues? Under MMD ministers did not drive V8 Land Cruisers but they still managed to be mobile without difficulty. Under the pro-poor PF, the poor were best-served by ministers in more expensive 4x4s bought from more expensive money borrowed from capital markets. Great financial prudence by MCS.
There are so many companies both indigenous and foreign evading tax, but what do you expect a poor accountant who spent so many years looking for employment to do if he is instructed to do the wrong thing besides what incentives are there to give you insight other wise this poor guy will just go back to the unemployment list so he just keeps quite, besides even you so called ZRA guys assist many companies in hiding plain evasion.
I wish the RTSA management can take a leaf from this. I challenge Soko to come to Kitwe offices to see what’s happening. To get a road license one has to pay 100 Kwacha to the agent otherwise you’ll not be served. I’ve tried to inform the ACC but to no avail. If anyone from the ACC is reading LT let them go there and they’re going to make comfortable arrests.
RATSA is sold. The next to be sold, while we are at it, is ACC.
MINES MINISTER THAT’S YOUR WAKE UP CALL! please wake up and start working
Comments are closed.