Maravi

ZRA raises capacity

ZRA raises capacity
By Kabanda Chulu
Thursday September 11, 2008 [04:00]

GOVERNMENT has started developing capacity at the Zambia Revenue Authority (ZRA) to rise to sophistication and complexity in tax management and auditing of the mining companies. ZRA commissioner general Chriticles Mwansa yesterday said there was need to seal all loopholes related to revenue collection of windfall taxes especially that this is a new system in the country.

“We have developed capacity to rise to the sophistication and auditing of mining companies especially that windfall taxes are a new system in Zambia and we sent a team to South Africa and Norway to acquire skills needed to implement best international practices,” said Mwansa. “We are ready to move and collect revenue whether at profit or normal levels and we have noted several loopholes which we are sealing in order to trail all movements of tax management and auditing of mining companies.”

And making submissions to the parliamentary committee on estimates on Tuesday, Secretary to the Treasury Evans Chibiliti said the government had realised that ZRA lacked qualified manpower to adequately audit mining companies in line with the newly introduced windfall taxes.

He said the government was developing an enhanced information and communication technology system at the ZRA to assist in auditing the mining taxes.

“Government has mobilised resources to assist ZRA to enhance its capacity building requirements in order to meet challenges imposed by the new mining tax regime,” Chibiliti said.

He said the government would not write off payment of windfall taxes by the rest of the mining companies that cited cash flow problems because mining taxes had become law and ZRA would impose punitive measures since the companies would be treated as defaulters.

“Only two companies have complied in payment of windfall taxes with a disclaimer while the rest have asked for grace period citing high costs of production but government will not write off payment of windfall taxes and the companies will be treated as defaulters,” said Chibiliti.

Out of the 13 registered large-scale mining companies, only two have paid windfall taxes that were introduced last April, with the rest claiming that production costs have gone up hence experiencing cash flow problems.

And the two companies have paid windfall taxes with a disclaimer, an indication that they could seek legal redress that could result in restoration of their rights under the defunct Development Mining agreements.

Labels: EVANS CHIBILITI, MINING, TAXATION, WINDFALL TAX, ZRA

posted by MrK @ 4:40 PM