The Zambia Revenue Authority (ZRA) has exceeded its revenue target of K44.7 billion for the 2018 financial year by K3.8 billion.
The total Revenue collected reached K57.8 billion while total refunds amounted to 9.4 billion registering total net collection of K48.5 billion which is at 18 percent of Gross Domestic Product (GDP) compared to the targeted 16.2 percent.
ZANIS reports that ZRA Commissioner General Kingsley Chanda disclosed this during a media briefing at Lusaka’s Taj Pamodzi hotel in Lusaka today.
Mr Chanda attributed the exceptional revenue performance to an improved compliance by some taxpayers.
“Infact during the year under review, our mobile compliance team made significant progress in curbing smuggling, our operations were targeted and driven by intelligence information and risk profiling,” Mr Chanda explained.
He pointed out that Value Added Tax (VAT) refunds will be a thing of the past once the Goods and Services Tax (GST) is implemented later this year.
“For the VAT refunds 78 percent was paid to the mining sector while 22 percent was paid to other sectors in the economy,” Mr. Chanda elaborated.
The Commissioner General however, said all legitimate VAT refund claims will be paid after forensic audits despite implementation of the GST after April 1, 2019.
He further said the enforcement operations conducted in 2018 resulted in 6,241 interceptions with a value of K2.8 billion.
In the year 2018 ZRA governing board approved the corporate strategic plan for 2019-2021 and the new plan has come with some changes among them the revised vision of being a world class model of excellence in revenue administration and trade facilitation.
While the new ZRA approved tagline is My Tax, Your Tax. Our Destiny.
Finance Minister Margaret Mwanakatwe announced during the 2019 budget presentation that government will abolish Value Added Tax (VAT) and replace it with the non-refundable sales tax. .