ZRA commended for exposing the tax evasion scam
The Centre for Trade Policy and Development (CTPD) has commended the Zambia Revenue Authority (ZRA) for exposing the tax evasion scam worth K76.5 billion in the extractive sector.
The center has also welcomed intentions by the authority to undertake an extensive audit of mining companies.
CTPD Executive Director Isaac Mwaipopo says Zambia is a country rich in mineral wealth, but notes that this wealth has not translated into meaningful social and economic development for the people.
Mr. Mwaipopo says poverty, inequality and debt still remain very high and therefore expectations around Domestic Revenue Mobilization remain unquestionably top priority for a struggling country like Zambia.
He notes that while there may be challenges in the collection of taxes and tax compliance especially in the informal sector, it is important that every person and sector pays a fair share of tax, and the mining sector is not an exception.
Mr. Mwaipopo further notes that despite government putting in place measures such as setting up the Transfer Pricing Unit, Mineral Value Chain Project and Mineral Production Support Project and the Extractive Industry Transparency Initiative (EITI), it is becoming more evident that revenues collected by government are not a true reflection of the country’s full potential to mobilize resources locally.