ZAMBIA POISED TO 6 ZRA PAYS K3BN BOLSTER ECONOMY VAT REFUNDS
6, 2021
BANKof Nevis International Limited (BONI) has predictBy BUUMBA ed CHIMBULU that Zambia will ABOUT be among Sub-Saharan Africa’s K3 most billion successhas ful economic been paid revival out by stories the due to Zambia a boom in Revenue copper pricAu- thority es, as it (ZRA) supports under the counValue Added try's financial Tax ( sector VAT) refunds through during Investrust the Bank. first quarter of this Zambia's year. prospects are looking The largest more portion positive of than this amount ever before,says has been BONI chan- Chief nelled Executive to the Officer, mining Michael sector, says Prest. ZRA Commissioner General, "In a Kingsley post Covid-19 Chanda. and vaccinated Mr Chanda world, said and ZRA as was we committed enter what to will paying be the all next VAT refunds, commodity emphasising super cycle, Zamthat the bia will organisation be one of on Sub-Sahaaverage of ran every Africa’s month most paid successful claims amounting economic revival to K850 stories," million. Mr Prest He said in ZRA a response would con- to a tinue press query. to refund an average of The K850 largest million every global month commodity trader Trafigura sees copper rallying aggressively to highs of US$15,000 a tonne as global decarbonisation efforts fuel global deficits.
On BONI'S investment in but Investrust indicated Bank, that Mr in some Prest months said it enabled refund claims the compawere higher ny to increase than what its geographic was budg- eted footprint, for, product paying range about and K1 billion. diversity of outreach and support “You which many would recall enhance we had its a lot role of in arrears Zambia’s that financial arose from serthe vices time sector we to had encourage issues with inVAT novative Rule solutions 18, which to was banking. later resolved Mr Prest and explained had to change that the BONI regulation saw significant to accommo- pipeline date of commercial the challenges opportunithe tax payers ty in Africa had,” where he said there in was an interview. space for infrastructure and essential Mr Chanda services explained in healththat ZRA’s care, retail strategy and transport was to to pay be current completely claims, reformed while through set- ting flexible aside capital funds investment. to deal with more From arrears. a financial services standpoint, “So far we have he explained, done just under BONI saw K3 billion a new in robust refunds finin tech the platform first quarter as being of trans2021 and formational we are to focused how Investrust a lot on Bank served it domestic customers.
BONI recently acquired a 24.08 percent stake in Zambia’s Investrust Bank Plc, making it the second largest shareholder after ZCCM Investments Holdings Plc.
“BONI’s investment and insistence that Investrust Bank better aligns itself Mr to Chanda serve ZCCM and Industri Development Corporation secures the future of Investrust Bank and its role in Zambia’s commerthing cial banking I can confirm sector. here We see is that the bank as we as dismantle playing a arrears pivotal more role in refunds Zambia’s come post Covid-19 in be- cause success. that is the nature of the "Our tax,” depth Mr Chanda of experience said. in commodities He said ZRA and would a two-deensure that cade track all those record that in providing exports had holistic to be wealth refunded. and portfolio management Mr Chanda services, expressed we feel concern that the breadth that ZRA’s of skills resource and basket expertise had that been we constraint- can bring ed, will compliment especially in Investrust 2020 and in this its pursuit year as of well. revitalising the industry," he said.
the mining industry because as you are aware they are the biggest claimants of refunds because of their nature of their business.
“I can safely confirm that just under K3 billion had so far been paid in fact the last payments we were making was April 1, 2021 and we will continue with that pro- gramme,” Mr Chanda said.
He explained that the VAT claims were either paid in cash or by offsetting against the tax payers current taxes.
“We do pay refunds in form of cash and we also for those that are willing, we do offset against their current taxes through a strategy we have managed to strategi- cally reduce arrears but one