Tuesday, May 28, 2024

ZRA needs about K 800 million every month for VAT refunds


ZRA Commissioner General Kingsley Chanda
ZRA Commissioner General Kingsley Chanda

Zambia Revenue Authority (ZRA) Commissioner General, Kingsley Chanda says the Authority needs about 800 million Kwacha every month for VAT refunds.

Mr. Chanda says the VAT system overtime became negative as Government started refunding more than it was collecting, hence the decision to change to sales Tax.

The ZRA Commissioner General has noted that Zambia will be among 46 other countries who will be using the Sales Tax instead of VAT.

Mr. Chanda says the Country has 6 months in which to engage stakeholders before implementation of sales tax and that tax will be designed in a manner that does not negatively affect the production sector.

He has said there is also need for a sales tax rate that will protect consumers.

Mr. Chanda has advised critics of sales tax not to mislead citizens into thinking that it is retrogressive.

He says ZRA is currently reconciling all tax accounts and that the Authority will have a net position of all obligations that need to be settled.

Mr. Chanda further says Government will pay any obligations it has towards any tax payer within 2019.

He was speaking at a Zambia Institute for Policy Analysis and Research breakfast meeting on the analysis of the 2019 National Budget in Lusaka.


    • I support this move – it’s progressive. As a founder of ZRA, Zambia should tax the mining companies even more.

  1. Hahahahahhahah great show of ignorance. For instance, If ZRA collects k 800, 000 then it should have that k800, 000 to refund the business houses provided they meet all requirements in terms documents needed by ZRA. There is therefore no need for ZRA to look for money. The problem has been that ZRA collects and then PF uses that money to induce bye elections and for large of no use traveling delegations . That explains why ZRA has been failing to refund.

  2. But ZRA adds interest and penalties when you don’t pay on time. Are they going to add interest to the same vat payments that are due for a long time?

  3. Unbelievable. Shall wr frink Tarino and apply for permission to own $10 from ZRA, ati it is “not retrogressive”. The truth is perhaps ZRA is too lazy and corrupt to do a normal job

  4. It has taken 20 years to build capacity in VAT administration. Changing will also require to restart building capacity in administering of sales tax. Companies need to retrain their staff, software change etc. I dont think its the best way to go.

  5. South Africa, Zimbabwe, Botswana, Kenya and Lesotho have VAT regime. There is no need for drastic departures from regional norms and practices. A debate is needed. If you took x what stops you from returning X? There is need for effective accounting system. Manpower is not an issue.

  6. First, ask yourselves who implemented our current VAT system, who designed it and do we fully understand it? Second, in whose interest is the current system serving? We should not tolerate tax evasion through overly complicated systems designed to confuse. It’s time we deviated from the status quo and start challenging systems which are not working for us. If things are not working, we need to change them and make them more efficient for us.

  7. Bwana Commissioner it is not in order to change the system just because of the incompetence of your staff.
    FIRSTLY, REFUNDING MORE THAN WHAT YOU ARE COLLECTING IS GROSS INCOMPETENCE ON THE PART OF YOUR STAFF. I ALSO SMELL A RAT OF CORRUPTION HERE!!! These excess payments were deliberate to warrant sharing the unaccounted for proceeds.
    Get rid of incompetent staff (that is if their seniors are competent) or train your staff adequately. YOU CAN’T BE CHANGING FROM ONE SYSTEM TO THE OTHER JUST BECAUSE OF YOUR INCOMPETENCE.
    True reflection of the saying: “A BAD CARPENTER BLAMES HIS TOOLS”.

  8. This is poor management strategy. ZRA Bwana King, K800m per moon to pay off VAT refunds x 12moons that is K9.6b. That amount will distort the 2019 Budget. How and why did ZRA let such s huge accumulation of Vat refunds. This is serious mismanagement of national resources.Does it means that the technocrats at finance ministry and ZRA have been asleep all along? Then these guys have been misleading the politicians. In the past ZRA was giving positive indicators to the public now why should the story change. I can smell a fish.which way out now?

  9. Mr. Chanda, can you please clarify if Zambia will be using Sales Tax (ST) or Good and Services Tax (GST)?
    In so far, no ZRA official has come with the answer.

  10. Commissioner General is implying that ZRA is broke has no capacity to meet its VAT refunds obligation. Very much of concern.

  11. ZRA need to hire technocrats fit for purpose: make VAT work smoothly and properly. There is no need to move the goal post to appease players. VAT is as good as its system experts. A few expatriates will perform wonders at ZRA. The players are underdeveloped, the country is not. Proud comes before a fall. Big data? Statistics? Public accountant? You name it. Stop being childish. Find the answer in theory and in practice. Fix the engine and stop buying brand new cars when you see a breakdown.

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