Maravi

ZRA tightens grip on mines over payments

COMMENT - I would say it is about time that the Task Force started to take a very close look at the mining sector and all the cozy deals that have shielded the foreign mining companies from taxation.

ZRA tightens grip on mines over payments
Written by Chiwoyu Sinyangwe
Thursday, December 04, 2008 5:27:45 AM

SOME mining companies operating in the country have defaulted on payment of the new taxes as Zambia Revenue Authority (ZRA) attempts to strengthen its grip on them. And ZRA has so far collected K293.1 billion from the mining companies under the new tax regime out of the targeted US $415 million set for the year.

Meanwhile, the revenue body says it has collected a net tax of about K8.2 trillion against the targeted amount of about K7.8 trillion between January and October this year.

ZRA commissioner general Chriticles Mwansa told journalists during a third quarter media briefing yesterday that although all the mining companies in the country had been compliant with bringing their returns to ZRA, remittance of funds was still a problem.

Mwansa, who also confirmed that the country would not be able to rake the targeted US $415 million from the new mining fiscal regime that came into effect last April, disclosed that ZRA stopped implementing the disputed windfall tax last month on account of the copper prices falling below the trigger point of US $2.50 per pound.

Mwansa also said ZRA was currently working on modalities to determine the revenue loss from the new mining fiscal regime as a result of the plummeting copper prices.

And Mwansa said the ZRA had collected a surplus of K426.6 billion (about 5.5 per cent) above the target from other taxes excluding the income from the new mining taxes.

Mwansa said ZRA during the period ending October 2008 collected about K10.6 trillion in gross taxes while the tax refunds stood at K2.4 trillion. The net tax collected stood at K8.2 trillion against a target of K7.6 trillion.

“This surplus is attributed to higher tax revenue collection largely under the company tax, pay as you earn (PAYE), mineral royalty, excise duty, trade taxes and medical levy,” said Mwansa.

Labels: CHRITICLES MWANSA, MINING, TAXATION, WINDFALL TAX, ZRA

posted by MrK @ 5:27 AM