The Zambia Revenue Authority (ZRA) has continued engaging key stakeholders from both the public and private sectors before replacing the Value Added Tax (VAT) with a non-refundable Sales tax, which takes effect in July this year.
ZRA Commissioner General Kingsley Chanda revealed that refund claims under the Value Added Tax (VAT) have increased to K1.4 billion from K 774 million per month, following the announcement of the introduction of the Sales tax which will come into effect in the third quarter of this year.
Mr Chanda explained that the escalation of VAT refunds was a serious revenue exposure for the government.
Speaking at the Deloitte Sales Tax bill discussion in Lusaka yesterday, Mr Chanda said the business community have until July 18th 2019, to submit their VAT refund claims, few days to the implementation of the Sales Tax.
“Government needs to operate, so the commitment is to pay US $80 million which is around K1 billion at the current exchange rate. This means that every single month ZRA accumulates arrears of between K400 million to K500 million which becomes a huge exposure on government,” he said.
He further disclosed that ZRA currently has 800,000 registered businesses out of which only 16,000 are registered for VAT, saying that the business community should re-organise themselves if they are to remain in business.
Meanwhile, several delegates at the discussion took turns to ask questions to the ZRA team regarding the tax exemptions, penalties and punishment to smugglers.
In response, Zambia Revenue Authority Commissioner of Domestic Tax Moses Shuko cited exports and capital goods as among items that are among the exempted tax.
Mr Shuko explained that the commission will impose penalties on non-compliant entities.
He emphasized that the Sales Tax is a progressive approach as it will have great benefits to the country’s economy and should be embraced by all well-meaning Zambians and business community.
Pardon me but this sounds like a huge mess….
I don’t like that Chanda, it will take years to match former ZRA boss late Chriticles Mwansa.
Just bring a white person for that job again.
Can’t wait to 2021!
@Nostradamus, was Chriticles a white person?
Whaaaaat!!………………..VAT refunds of at least K700m per month?? No wonder we are almost bankrupt as a country
This is not rocket science my friend. You pay me i refund. So what are you talking about? Unless i pay you and you misappropriate and fail to pay me when i come for my money.
Meant unless you pay me and i misappropriate and fail to pay you when you come for your money.
Just another way to not pay dues. This government has killed our economy.
Everyone is feeling it apart from the politicians and their relatives/friends
How does it affect you when it is not your money in the first place?
A win win situation should prevail in revenue collection if Zambia as a nation is to positively progress.
In this mix you also have those investors who came in on a huge tax holiday. We told you this idea of just doing things for the short term will come back to bite your behind. Listen to strategists just for once in your miserable lives!
Goes to show V.A.T has been in favour of Capitalists and fraudulent to a great extent. Out of 800,000 businesses, 16000 siphon what 784,000 paid in V.A.T not to mention what millions of ordinarily Zambians paid in V.A.T without claiming. The smart alecs of the 16,000 made their hay while GRZ slept in the sun through some colluding and ignorant officials. No more now. Inflate the claims as much as you like while you can before the sun sets in July. Then we will all be on equal footing paying taxes without claiming.
Ode to tax and wealth equity. No more riding to riches and enjoying new infrastructure on the back of taxes paid by poor people.
So what they are saying is VAT refunds only started happening under PF or what? Obviously not which means this whole mess is due to the unbelievable incompetence of this very dull regime
Dude whatever, companies have just realised that they can make money out of VAT refunds. That is exactly what they are doing