TAX CLEARANCE CERTIFICATE TERMS CHOKING SMALL BUSINESSES

CONDITIONS attached to getting Zambia Revenue Authority (ZRA) tax clearance as compliance measures are frustrating companies out of business, says Ndola District Chamber of Commerce and Industry boss, Joseph Malisawa.

Government through the ZRA had issued new instructions to the effect that starting from January 1, 2024 companies with tax arrears would not be given tax clearance certificates until they clear balances.

Mr Malisawa argued that this was spelling doom to local enterprises with low capital base.

He contended in Kitwe on Friday that ZRA should have a way of collecting taxes from defaulters rather than denying them opportunities to do business.

Mr Malisawa cited a scenario where a construction company from Ndola lost a potential US$2 million tender on account of not having a tax clearance certificate.

“We need to introspect on this measure which is killing businesses. I have been informed that one of our members at the Ndola Chamber has just lost a US$2 million tender on account of not having a tax clearance certificate. This is a reality,” he said.

Mr Malisawa alleged that the company was now sending employees away as a mitigation measure to save the business from collapsing.

In response, ZRA acting Commissioner, Richard Kapasa, advised companies with cash flow challenges to utilise the time to leverage the agreement window.

Mr Kapasa said the firms might be given temporal tax clearance to access businesses.