-Mutati told Parliament that revenue collection fell by 10 per cent
– ZRA says it exceeded revue collection target by K480 million.
THE Zambia Revenue Authority has dismissed finance minister Felix Mutati’ statement in Parliament on Wednesday that revenue collections fell by 10 per cent in the first five months of this year.
Just today, the Ministry of Finance said Mutati had made a mistake in his speech to parliament when he said current external debt stands at $17.2 billion from $6.9 billion in December 2016.
Delivering ministerial statement on the state of the economy, Mutati said tax revenue collections by ZRA came under pressure in the first five months of this year owing to waning economic activities in the country.
…fiscal performance in the first five months of 2017 was challenging. Revenues under-performed by 10 per cent compared to the budget,
“The under performance in revenues has been on account of low tax compliance by taxpayers, and delayed implementation of budget measures such as land titling, installation of electronic fiscal devices to improve VAT collections, implementation of electronic equipment in the communications sector to improve the performance of excise duty and the introduction of a single window at entry points to reduce turnaround times at borders and boost revenue.”
But ZRA have moved to dismiss the Minister of Finance’s statement, claiming that contrary to Mutati’s revelations, the revenue collection body exceeded its target in the first five months of 2017.
Very very embarrassing.
In a statement issued by its public relations department, ZRA stated that it exceeded its 2017 operational target for the first five months by K480 million, which was 3.3 per cent above target.
If the ministry of finance does not work in conjunction with ZRA on compiling financial data, then what kind of imbeciles are running our country?
Against the 2017 operational target, ZRA is K480 million or 3.3 per cent above target for the first five months,” according to a statement issued by ZRA senior corporate communications officer Oliver Nzala. “The Authority is very confident of meeting its revenue collection target by the end of the year because of measures and initiatives it has implemented such as collecting Value Added Tax (VAT) at source of which K1.454 billion has been collected from 1st January, 2017 to 31st May, 2017.
In the 2017 national budget, Parliament approved a revenue target of K37.622 billion subject to the legislation of specific tax measures among which was the tax on copper concentrates and border crossing fees.
However, Parliament did not legislate some of the proposed tax measures resulting in a revision of the 2017 operational target for ZRA to K36.774 billion.
ZRA stated that it was very confident of meeting its revenue collection target by the end of the year owing to measures and initiatives it had implemented such as collecting Value Added Tax (VAT) at source of which K1.454 billion has been collected from January 1 to May 31.
ZRA will soon conduct forensic audits on large mining companies in order to appreciate their various complex financial processes they go through when generating incomes that are used for tax purposes and this will be done by an independent auditor,
“Apart from the decentralisation of anti-smuggling operations, the Authority has also recruited 45 tax inspectors in order to enhance revenue compliance and enforcement especially in the retail sector.”