The Zambia Revenue Authority has recorded a surplus of K423.0 billion in the collection of tax revenue for the period January to April 2008.ZRA Commissioner General Chriticles Mwansa says government expected ZRA to collect tax revenue amounting to K2, 842.7 billion representing 5.5 percent of Gross Domestic Product but ZRA collected K3, 265.7 billion representing 6.3 percent in tax collections.
Mr. Mwansa announced this at a ZRA first quarter press briefing in Lusaka today. Mr. Mwansa, who described the performance of ZRA in the first four months of the year as successful, attributed the huge surplus recorded to higher than programmed tax revenue collection under company tax, Pay As You Earn, withholding tax, excise duty and trade taxes.
He added that the success is also attributed to a conducive macroeconomic environment obtaining in the economy and the steps that ZRA has undertaken to re-engineer the way of doing business.
Mr. Mwansa also announced that ZRA has collected K29.7 billion as returns and payments for mineral royalties which were due on 14th May, 2008.
He said all major players in the mining sector complied with the legal provisions and paid mineral royalty at 3.0 percent.
He added that the bulk of revenues from the mining sector are expected to be paid in June 2008 when the first returns and payments for company income tax and other taxes are due.
Mr. Mwansa expressed hope that governments target of collecting $415 million from mineral royalties will be met by the end of this year.
He pointed out that following the launch of the taxpayer charter in February this year, ZRA has started to monitor and report the performance of the institution against set service standards.
He said in the first quarter of this year ZRA has attained an overall success score of over 60 percent in reduced tax registration periods, quicker issuance of tax clearance certificates and quicker refund processing of some taxes.
Mr. Mwansa also said following the restructuring of the Flexible Anti Smuggling Team and the creation of the Mobile Compliance Unit, ZRA in the review period successfully conducted risk based enforcement interventions to detect and curtail smuggling activities at borders and outside for the transactions that eluded control officers at borders.
He said the move resulted in 1, 120 seizures that yielded K12.2 billion in revenue.
Mr. Mwansa thanked all citizens who have provided information about illegal operations by some organisations and individuals saying all the information is investigated and further action is taken to prosecute accordingly when need arises.
Well done ZRA. Please GRZ, make sure you solve the problems at unza and elsewhere with the surplus money.
We can not afford to keep it without utilising it when there are critical issues to attend to at hand.
Hearty congratulations to ZRA for the job well done! I believe the govt will put that collected revenue to its proper use that is to the priority areas.
We always hear about this surplus collection by ZRA but where does this money go, because we don’t see any development in Zambia. e.g Good health facilities and education system.
?
Job well done ZRA and I hope that the govt will direct some of these resources to the build and improve our healthcare facilities.Levy,Sata and FTJ have all got chronic cardiac conditions.It only makes sense that a CARDIAC CENTER is built using such available resources to not only take care of these three but the rest of the nation.This would in the long run help make further savings from the funds that could have been spent on unnecessary evacuations.
If ZRA is to really make strides, the idea of expected revenues should stop. Only in this way can an accurate measure of revenues collected be transparent. They should stop measuring things using management accounting and move towards strategic accounting as the former will continue to facilitate for the manipulation of figures.
Great! I hope to see better roads now.
Well done ZRA. But the challenge now lies in sustaining this unprecedented perfomance. This should also serve as lessons to our leaders particulary the President and his Ministers. The point is they should appoint credible people to head parastatals and government institutions.
If we look back at what ZRA as before the coming in of Mr.Criticles Mwansa, you will agree with me that the performance has really improved very much.
Please Dr.Mwanawasa, apply the same formular to other limping parastals and Statutory institutions. We need good managers to drive this economy.
I hope my free advice will not fall on dead ears-as it has been always the case.
Over taxation!!!
#9 ZRA has always raked raked in alot of revenue. The problem is utilisation. Even agencyies that assist ZRA with collecting revenue on behalf of GRZ, do not see the benefits of it. Take for instance RTC,ZP and even the lower courts. Their front desks are in such pathetic conditions and leaves one to wonder wether we are till under colonial rule.
#10 These are unreal targets though, I hope the ZRA guys don’t get bonuses from “exceeding” these crazy expectations.
#11
Ofcourse they do. Why else has there been gross mismgt. Unless they prove that everything is handed back to the central gvt coffers and they keep no track of the disbursement of these revenues. Ohterwise….high suspects
I know people that are close to the commissioner, he a very good professional and hardworking man. He’s setting some great standards, just what we need in most institutions. Keep it Mr Mwansa!!! You Rock!!
give the surplus money to ZESCO.
Government is the biggest spender we have in that economy. They control the fisical policy. We’ll see what they can do.
S/A Xenophobia catches Zambians
Two Zambian families have been caught up in the xenophobia of violence that has gripped South Africa and left 23 foreigners dead.
Chief government spokesperson Mike Mulongoti who is also information minister said one family had its home windows smashed and is now living in fear.
The minister said the other Zambian family is locked up in a flat too scared to come out.
The Minister told ZNBC news that Zambians living in South Africa who feel insecure should come back home.
He said there is economic and political security back home.
Mr. Mulongoti appealed to the South Africans to allow foreigners living in their country to wind up their business b
… before they return home.
He said it is not necessary for Zambians to continue living in fear and should get in touch with the Zambian High Commissioner in South Africa to facilitate their return home.
Mr. Mulongoti was sad that while many African countries had assisted South Africa during the aparthied era, its citizens have became violent towards African foreigners living there.
The Minister explained that if the violence in that country is not checked it might impact negatively on that country’s economy.
#16 and 17
you guys are on the wrong topic.
the topic is “ZRA Records K432 Billion Collection of Tax Revenue”
please read
It’s now time these fools give back the money to the people to stimulate the economy. I know this can not happen in Zambia, but Govnt should come up with a good idea how to run the economic affairs and health sector. ZAMBIA FOR ZAMBIANS, screw all these countries disrepecting our people. ONE ZAMBIA, ONE PEACEFUL NATION FOR ZAMBIANS.church
its good to hear that ZRA has collected billions of Kwacha from taxes for the government.
But we also want to know where this mone is going. there’s lot to be done in Zed especially with issues concerning healthy, education, building infrastructure and roads.
And also the government need to help people with loans so that they can setup business, they need to support small businesses.
All these international companies get tax incentives what about the Zambian businesses. Zambians cant compete with these international companies.
THATS VERY GOOD BUT HOW IS THIS K432 BILLION GOING TO BE USED ONLY GOD KNOWS.I ONLY HOPE ITS NOT IN THE MILANZI BY-ELECTIONS AND MORE PRADOS FOR THE INDUNAS NOW….OUR GOVERNMENT,PLEASE MAKE PRIORITIES!!!!!!!!!!
Atleast that should be able to pay Levy’s & Sata’s medical bills.
Just give a small portion to ZRA to upgrade their surrounding & ICTs including vehicles.am surprised they r still using tuma Mazda which i left in 1998.
If ZRA is beating its revenue targets, shouldn’t we consider increasing these targets? Their current target is about 19% of GDP.If increased to, say 30%, not only will we reduce or complete eliminate domestic & foreign borrowing to finance the national budget, we will also increase budgetary allocations to critical areas such as health [e.g. setting up of specialist clinics, to reduce on money spent abroad for specialist treatment] and education [sort out UNZA and CBU problems], etc. While commendable, ZRA is setting their targets too low, or are these funds grossly misappropriated?CSO should start doing the Use of Income accounts, so that we know how the money from production (GDP) is used!
The 30% of GDP target I propose can be achieved by further broadening of the tax base to include the informal sector, which absorbs 80% of the total labour force.
…..if you want to develop Zambia, start with building new and better roads and airports, then etc and everything else will follow smoothly. and for heavens sake stop this thing of just renovating existing structures only. Yes renovate them but build new modern structures too…eish
Please don’t tell me that GRZ is still acquiring vehicles for GRZ officials. It should rather offer them a car allowance and let them do the acquiring themselves along with the maintenance of their respective vehicles????
Thieves,pan……
we hear these type of news everyday, but don`t see the fruits of it, first quarter profit ma ass, this money is only enjoyed by the same pipo who have fat pay checks, the common person just have to continues straggling , and they sequeeze the last panny out of them,and give the reports,show as the friuts!
Answer to #5 is what the govt has started doing. Ba BOMA thanks for listeninig.
HEALTH MINISTRY TO PROCURE MRI MACHINE
HEALTH deputy minister Lwipa Puma has revealed that President Levy Mwanawasa has directed his ministry to procure a Magnetic Resonance Image (MRI) machine used for diagnosing diseases of the spine.
Speaking when officiating at a Philips Medical System Capacity Building in Health Care Seminar in Lusaka on Thursday, Dr Puma said the government wanted to procure machines needed to treat patients locally.
He said this would reduce evacuation costs for government and make it possible for people to access quality treatment locally.
All the comments i have seen is well done well done.I see we all have a vail on our faces.What you Zambians dont understand is that these guys have been making this kind of money all along!you just dont know that they do.before this,how often have you seen Zambia telling the nation how much they have made from taxes??right now i believe its just a trick to lure in more investors in the new boom in our economy and to create confidence..Since i know what i am saying is true,the only way you can prove me wrong is wen zed starts building new roads and clinics.am only 19,lets hope il still be alive wen they start