The Zambia Revenue Authority (ZRA) has taken decisive action by impounding a South African truck carrying assorted alcoholic beverages that were significantly undervalued. This move comes as part of the ZRA’s ongoing efforts to combat tax evasion and ensure that the government receives its rightful revenue.
The consignment in question, had it gone unnoticed, would have resulted in a potential loss of approximately One million Kwacha in taxes. Oliver Nzala, ZRA’s Corporate Communications Manager, revealed that the importer had presented documents indicating that the goods were valued at around 774 thousand Kwacha. However, upon closer inspection, it was discovered that the true value was far higher, standing at K1.8 million.
Nzala stated that the ZRA had utilized its intelligence systems and cross-referenced details from the country of origin to uncover the undervaluation scheme. In light of this discovery, the ZRA intends to conduct a thorough assessment and impose penalties on the importer in addition to the correct taxes owed.
Importantly, Nzala issued a stern warning, emphasizing that if the importer fails to comply with the corrective measures within 14 days, the ZRA will initiate seizure and forfeiture procedures, further underscoring the seriousness of tax evasion.
Addressing the media in Lusaka, Nzala stressed the importance of importers making accurate declarations and adhering to tax regulations. He noted that the ZRA’s primary mission is to facilitate trade, and punitive measures are only taken when necessary to protect government revenue.
By cracking down on undervaluation and tax evasion, the ZRA aims to protect public funds and uphold the integrity of tax regulations, ultimately contributing to Zambia’s economic stability and development.