Maravi

CBTA links illegal practices at borders to high taxes

CBTA links illegal practices at borders to high taxes
By Fridah Zinyama
Saturday February 23, 2008 [03:00]

THE Cross Border Traders Association (CBTA) on the Copperbelt has said high taxes and poor facilitation by officials at border posts have compelled most traders to use informal channels to conduct their trade. BTA secretary general Tadeo Taruvinga was speaking at a capacity building and trade facilitation forum organised by the COMESA secretariat in collaboration with the Zambian and DRC governments held at Kasumbalesa.

The forum was held to facilitate the implementation of the COMESA Simplified Trade Regime (COMESA-STR).

“We find doing trade with DRC’s mineral rich Katanga Province which has a population of between 10 to 15 million people very profitable,” he said. “We normally trade in foodstuffs such as mealie meal, tomatoes, beans, rice and goats.”

Taruvinga said the forum dealt with issues to do with smuggling of goods from Zambia to the DRC at Kasumbalesa.

“It is unfortunate that things at Kasumbalesa have not been formalised as traders have been forced to use informal and illegal trade channels to conduct their trade,” he said. “This has cost the two governments the much needed revenue that they could have realised from this busy post.”

Taruvinga said it was important for the two governments to resolve the issues of high taxes, unauthorised payments to officials, complicated documentation and procedures and various restrictions to trade at the border.

“Kasumbalesa is one of the busiest borders in COMESA with an average of 200 to 300 heavy goods vehicles entering DRC at this point on a daily basis,” he said. “If managed well, the two governments are supposed to rake in a lot of revenue.”

And the two governments resolved to launch the COMESA Simplified Trade Regime to foster cross border trade between the two countries.

Under the COMESA-STR, cross-border traders would benefit from duty and quota-free entry of their goods through the use of a Simplified Customs Document (SCD) and a Simplified Certificate of Origin (SCO) provided the goods they carry are valued at US$500 or below per consignment and appear on a Common List of Eligible Products to be agreed upon by the two countries.

The initial list which has already been approved largely comprises agricultural and food products.

This list is to be expanded to include manufactured products produced in the two countries.

Labels: BORDERS, CBTA, TAXATION, TRADE

posted by MrK @ 5:32 AM