The Zambia Revenue Authority (ZRA) has continued to dismantle Value Added Tax (VAT) refunds to reduce the backlog currently at about K37 billion.
The Authority has in the month of November paid K1.3 billion in refunds surpassing the usual K850 million monthly allocation.
ZRA Corporate Communications Manager Topsy Sikalinda said that the decision to refund higher figures is meant to clear the backlog of the audited refunds especially for the Small and Medium Enterprises (SMEs) which have been outstanding since 2013.
Mr. Sikalinda says in the payments for the months of October and November, the Authority has cleared most of the backlog on a First In First Out basis for audited refunds below 5-million kwacha from 2013 to 2019.
He said in a statement to the media that the tax refunds are projected to rekindle microeconomic activity at the local level, push liquidity in the Small and Medium Scale Entrepreneurs.
Mr. Sikalinda said the Authority will continue working closely with the stakeholders to ensure the backlog is liquidated and businesses continue operating in a thriving environment.
He said as announced last month, the Authority will continue implementing a more business-oriented, transparent, and predictable refund mechanism that will stimulate the growth of the business sector.
ATLEAST ITS A START
NOT MANY WILL UNDERSTAND THE CONSEQUENCES FELT BY THOSE WHO HAVENT BEEN PAID OVER THE YEARS
AND THE NEGATIVE EFFECT ITS HAD ON THEIR EXPANSION
AGAIN THE BLAME HAS TO GO BACK TO THE PREVIOUS ADMINSISTRATION FOR LETTING IT GET TO THIS STATE OF AFFIARS
This is ridiculous, how does a national treasury function when it can only afford to pay 0.4% of it’s debt stock? These guys need to be audited because they are busy making deals at the expense of the Zambian people. This institution appears to be a cash cow rather than a bread basket of the nation. How much interest will 37 billion accrue and who is the beneficiary? We have too many creative accountants in Zambia who have discovered the use of jargon to buy time. Change your outdated VAT rules otherwise refund in full what you owe because if it was the other way round, you would pounce with your bailiffs.
ZRA IS FULL OF NONSENSE
WE NEED TO CONSIDER AGAIN SALES TAX
EVERYBODY THEN PAYS AND ALL THE FILING AND PAPER WORK IS REMOVED
ALL THESE YEARS ZRA HAS BEEN TALKING ABOUT EXCEEDING THEIR TARGET IN COLLECTIONS , THEY WERE NOT DISCLOSING TO THE PUBLIC THE HUGE DEBT IN UNPAID VAT RETURNS.
THIS CONFIRMS THAT THE COUNTRY IS TRULY BROKE AS THE UNPAID VAT RETURNS DEBT EXCEED THE TAXES COLLECTED.
WHERE ARE THOSE DULL PF CADRES WHO WERE SAYING THE GOVERNMENT COFFERS HAVE MONEY?
ZAMBIA IS STILL IN THE RED.
Kingsley Chanda suggested that we go to GST and was almost “killed” for his proposal. I agreed with him when he said a tax system that generates debt instead of cash is NOT good. I will not pretend to know much about tax but VAT, taxing every stage of value addition for me as a layman actually penalizes value addition and therefore discourages industrialisation and job creation. Please correct me if I am wrong.
WHILST SALES TAX IS EASIER IN SOME WAYS
CASSCADING IS ALSO A DRAW BACK WHEN MIDDLE MEN ARE INVOLVED
How did they even allow the debt to reach that staggering figure of K32 billion when each year they were boasting we have even surpassed our target. What was Kingsley chanda doing all this time. They are quick to penalize and charge interest when you don’t pay them so are they going to pay penalties and interest to all the companies whom they are owing?
Nonsense. All these years. This institution needs a full overhaul. They are playing with Taxpayer Money.