ZRA claims VAT has been drain on national coffers

ZRA claims VAT has been drain on national coffers

Zambia Revenue Authority Commissioner General Kingsley Chanda says Value Added Tax -VAT- has been a drain on national coffers since its introduction in 1995.

Mr. Chanda says Government has been losing close to One point four billion kwacha per month in refunds to companies.

He says VAT also promoted frauds in businesses where firms were under declaring goods and over valuation of goods to demand huge refunds.

Mr. Chanda said this during the Deloitte in dialogue on the Goods and Services Tax.

He said some companies were demanding double refund on the same certificates leading to a strain on the treasury.

Mr. Chanda said the introduction of the Sales tax will help remedy some of these challenges.

The ZRA Commissioner General noted that every tax law is aimed at contributing to the treasury and not working as a cost on the part of government.

And Deloitte Senior Tax manager, Kennedy Munyandi said there is need to raise awareness on the new tax.

Mr. Munyandi also said the proposed nine percent sales tax on locally produced goods and 16 percent on imported products is too high.

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