Government has unearthed a scam in which a Chinese investor in Choma has evaded Value Added Tax for 17 months.
This came to light when Choma District Commissioner Golden Nyambe made an impromptu visit to a Chinese shop- Chuen Zhu in the area following
a tip from members of the public.
Mr Nyambe took the Chinese proprietor to task this morning for deliberately failing to comply with the financial regulations of the
country which require every person or company registered to conduct business to remit VAT.
Chuen Zhu company allegedly issues customers receipts without a VAT charge, prompting the DC to undertake a physical inspection where he
grilled management of the shop for alleged tax evasion.
Mr Nyambe said he found it hard to believe that a business enterprise of foreign origin could operate without remitting necessary tax to
He described the situation as unfortunate especially that government has continued losing revenue through unremitted tax at time when it is
making efforts to raise more revenue to meet the huge demand for social services.
Mr.Nyambe demanded an explanation from management on how it has not been remitting the tax when it is a known factor that they should
collect tax for government.
He said Government cannot afford to lose revenue in such a manner. But Jason Lui, owner of the shop, claimed he was not aware that the
till machine which is supposed to effect VAT deductions is not functioning.
He blamed his workers for not advising him about the situation.
However, Mr.Nyambe directed the Chinese businessman to immediately ensure that the till machine is re-programmed so that VAT charges are
reflected on the receipts.