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