
The Zambia Revenue Authority (ZRA) has recorded a deficit of K573.9 billion below target in revenue collected between January and September this year.
ZRA Commissioner General Chriticles Mwansa said the tax revenue out-turn largely due to on account of poor performance in trade taxes adding that this was lower than the projected revenue collection in terms of trade taxes
He said in the period under review ZRA collected K8, 717.5 billion in gross taxes while the refunds stood at K1, 644.9 billion, net tax gobbled K7, 072.6 billion against a target of K7, 646.5 billion.
Mr. Mwansa said this in Lusaka today in a speech read on his behalf by ZRA Commissioner for Domestic Taxes, Wisdom Nhekairo.
The Commissioner-Gen. noted that the world financial crisis contributed to the rapid depreciation of the local currency the Kwacha against other major currencies during the first quarter of the year which resulted to slowdown in cost importation in economic activities in the country.
Mr Mwansa said in a bid to mitigate the impact of the global financial crises on trade taxes, the Authority set up measures that increased audits of the Taxpayers’ accounts in different key sectors of the economy.
He explained that the audits enabled Authority to improve revenue collections from inland taxes, a situation that is more dependable and sustainable for the nation.
The however discloses that the Authority has embarked on vigorous mining audits to ensure that they maximize revenues including taxpayers’ accounts in different sectors of the economy.
The Commissioner General added that these audits are aimed at verifying the compliance with the tax regime and validating the cost structure of these sectors that are being audited.
Mr Mwansa said the Authority commenced its pilot audits in February this year for three major mining houses in Zambia with a technical assistance of the Norwegian government.
He added that the last phase of these audits commenced last week and it is expected to be completed by the end of November this year.
The mining companies being audited are Mopani Copper Mine, Konkola Copper Mine (KCM) and Kansanshi Copper Mine respectively.
The Commissioner however, said during the review period ZRA intensified audits for small scale mining companies involved in gemstones, quarrying and those dealing in base metals to ensure comply with payment of mineral royalty.
ZANIS