Probe tax evasion-ZRA told | Zambia National Broadcasting Corporation
Zambia’s High Commissioner to South Africa Emmanuel Mwamba has urged the Zambia Revenue Authority (ZRA) to expedite investigations concerning allegations of tax evasion by some petroleum and energy importing companies based in Zambia.
Mr. Mwamba says the decision by ZRA to dishonour SADC certificates of origin of oil importing companies, has created an impression that Zambia is not complying with the SADC trade protocols.
He says some players in the energy and petroleum sector are allegedly taking advantage of the rules governing tax exemption of goods and products originating from the SADC region thereby denying the Zambian government the much-needed revenue.
Mr. Mwamba was speaking at the Zambian Mission in Pretoria, South Africa, when a delegation from the Zambia Revenue Authority paid a courtesy call on him following their verification mission to South Africa for fuel imported into Zambia with SADC certificates of origin.
He however noted that the decision by ZRA to suspend the honouring of SADC certificates of origin that enabled importers to be tax exempted has negatively affected industries in Zambia especially the mining sector. He called for a speedy conclusion of their investigations to help resolve the outstanding matter.
Mr. Mwamba encouraged the delegation to carry out field verification visits to oil processing companies based in South Africa, to ascertain claims that the oil products they import originate from other countries other than South Africa.
Meanwhile ZRA Deputy Commissioner, Reuben Kunda said the risk of revenue leakage is high among oil importers as some are taking advantage of the SADC protocol to smuggle petroleum and energy products into Zambia.
He said the Authority is putting stop-gap mechanisms in place that would reduce issuance of SADC tax exemption certificates to undeserving companies.
This is according to a statement issued to ZNBC News by First Secretary Press and Public Relations at the Zambian High Commission in Pretoria, Naomi Nyawali.