PF sues ruling MMD for not paying tax on campaign materials

PF sues ruling MMD for not paying tax on campaign materials

PF Secretary general Wynter Kabimba has sued the ruling party MMD and Zambia Revenue Authority (ZRA) for  failing to collect import duty from the party for the importation of campaign materials worth about K3.5 billion brought into the country.

According to the writ of summons filed before the Lusaka High court, Mr Kabimba wants an order that ZRA assesses and charges duty payable by the MMD on all its campaign materials and motor vehicles imported for this year’s elections.

Mr Kabimba who has also sued the Attorney General as the second defendant and MMD national secretary Major Richard Kachingwe as third defendant wants an order that the Drug Enforcement Commission (DEC) investigates and discloses to the general public the source of income by the MMD used for the purchase of about 100 Toyota Hilux motor vehicles, buses, 5000 bicycles and about 1000 bales of chitenge material and T-shirts.

He is further claiming for an interim mandatory and prohibitory order of injunction against the MMD restraining the distribution of motor vehicles, bicycles, chitenge materials and T-Shirts until the duty payable is assessed by ZRA and payable by the MMD.

The PF is also claiming any relief the court may deem fit and costs. According to a statement of claim filed in the Lusaka High Court, Mr Kabimba stated that on July 28, 2011, President Rupiah Banda dissolved parliament and set September 20 this year as the date for tripartite elections.

He said on August 1, this year, President Banda during a function held at Intercontinental Hotel in Lusaka launched the 2011 election campaign for the MMD.

He said after the launch, Maj Kachingwe started allocating campaign materials to its adopted candidates in form of bicycles, bales of chitenge material, motor vehicles and T-Shirts.

Mr Kabimba said on August 7, 2011, President Banda officiated at a function in Lusaka where the said materials which were allegedly imported into the country in large quantities were allocated.

He said the MMD’s campaign material was liable to import duty and other incidental taxes which the first defendant had negligently failed to charge and or collect on behalf of the government treasury of the Republic of Zambia.

Mr Kabimba said the consignment of the third defendant’s campaign materials included about 100 Toyota Hilux motor vehicles, bales of Chitenge materials and T-Shirts and at least 5000 bicycles all valued at over K3.5 billion.”

Mr Kabimba claimed that the MMD’s consignment of campaign materials was disproportionate to its income adding that the MMD had no investment portfolio or any business activity from which it would earn such income to justify the expenditure on the material.

He further stated that the DEC is obliged by law to institute investigations into the source of the income or disproportionate expenditure levels by the MMD and inform the public accordingly.

Mr Kabimba said ZRA should not allow the MMD to use its imported consignment of campaignmaterials before import duty and other taxes are paid to the commission.

And in an affidavit in support of ex parte summons for an interim order injunction pursuant to Order 29, Rule 1 of the Rules of the Supreme Court of England, 1999 edition, Mr Kabimba averred that DEC had not investigated the MMD’s source of income in accordance with its mandate.

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