FRA, ZEMA, 12 other Statu­tory and Paras­tatal bod­ies fail to pro­duce Fi­nan­cial Re­ports from 2013 to 2016

Zambian Business Times - - FRONT PAGE -

- con­tin­ued Other spe­cific mea­sures to be con­sid­ered for im­ple­men­ta­tion in 2018

In line with the Min­is­ter of Fi­nance’s pro­nounce­ment in his 2018 Na­tional Bud­get Ad­dress re­gard­ing the need to ra­tio­nal­ize tax in­cen­tives.

Mr. Chanda said that "ZRA is in the process of re­view­ing the ef­fi­cacy of the Duty Draw­back Scheme - DDS which al­lows ex­porters of lo­cally man­u­fac­tured goods to claim a por­tion of the im­port duty paid on their in­puts".

This is in view of the fact that most of the in­puts that the man­u­fac­tur­ers im­port for use in their pro­duc­tion pro­cesses are duty free as they orig­i­nate from ei­ther the SADC or COMESA re­gions. No­table weak points ob­served last year The Author­ity has in the re­cent past noted abuse in the im­por­ta­tion of petroleum prod­ucts, es­pe­cially im­ports pur­ported to be made on be­half of Gov­ern­ment.

In this re­gard, Mr Chanda said that "en­force­ment ef­forts have been stepped up re­sult­ing in the im­pound­ing of a num­ber of trucks be­long­ing to some lo­cal Oil Mar­ket­ing Com­pa­nies (OMCs)".

In­ves­ti­ga­tions are on­go­ing and once con­cluded, ap­pro­pri­ate penal­ties and sanc­tions will be ap­plied on erring OMCs.

As an in­terim mea­sure to curb this abuse, ZRA will, with im­me­di­ate ef­fect, raise as­sess­ments of fuel im­ports by the Gov­ern­ment and its’ ap­pointed agents at the point of en­try into the coun­try as op­posed to do­ing the as­sess­ments in­land.

In 2017, the Author­ity also no­ticed an abuse in the use of Cer­tifi­cates of Ori­gin that al­low goods from the SADC and COMESA re­gion to en­ter Zam­bia duty-free.

ZRA in con­junc­tion with the South African Rev­enue Author­ity con­ducted a ver­i­fi­ca­tion ex­er­cise of the cer­tifi­cates of ori­gin which re­sulted in the ban­ning of the im­por­ta­tion of fuel from South­ern African Devel­op­ment Com­mu­nity - SADC.

He is hope­ful that once gov­ern­ment di­verts it­self from the pro­cure­ment of fuel, this prob­lem will be cur­tailed.

In or­der to re­duce tax debt of State Owned En­ter­prises the Author­ity will con­tinue to ne­go­ti­ate and im­ple­ment debt swaps and other debt col­lec­tion mech­a­nisms avail­able with the con­cerned en­ti­ties.

Ac­cord­ing to Mr. Chanda in­di­cated that such a sys­tem will go a long way in re­duc­ing out­stand­ing debt stock on our books. Re­view­ing of turnover tax An­other com­pli­ance ini­tia­tive will be to re­view the com­pa­nies on Turnover tax with a view to sin­gle out com­pa­nies whose turnovers are above the statu­tory limit Eight Hun­dred Thou­sand Kwacha per an­num.

Mr. Chanda noted that "All firms cur­rently on Turnover tax who will be found to be above the statu­tory limit will be manda­to­rily reg­is­tered for VAT and charged ap­pro­pri­ate penal­ties for fail­ure to reg­is­ter for VAT".

“I am there­fore call­ing on all busi­ness houses that are on turnover tax but whose turnover has ex­ceeded the statu­tory limit to vol­un­tar­ily reg­is­ter to avoid penal­ties,” he said. Cor­po­rate So­cial Re­spon­si­bil­ity - CSR In 2018, the Cor­po­rate So­cial Re­spon­si­bil­ity for ZRA will tar­get vul­ner­a­ble groups in so­ci­ety e.g. or­phan­ages, schools, hos­pi­tals etc. The author­ity will fo­cus on com­mu­ni­ties in ar­eas with high in­ci­dences of tax evasion and tax avoid­ance e.g. smug­gling in or­der to raise tax aware­ness in such com­mu­ni­ties.

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