Maravi

ZRA collects K319.5bn from new mining regime

ZRA collects K319.5bn from new mining regime
Written by Kabanda Chulu
Tuesday, January 06, 2009 5:11:21 PM

ZAMBIA Revenue Authority (ZRA) has collected K319.5 billion out of the targeted K917.3 billion from the new mining fiscal regime that was implemented last year.
And the ZRA has so far collected K43.4 billion from medical levy since inception in 2003, which is a one per cent levy on interest earned by all bank account holders.

In an interview on Friday, ZRA Commissioner General Chriticles Mwansa said the total mining revenue collected under the new mining fiscal regime for the period April to December 2008 stood at K319.5 billion, representing only a 34 per cent collection from the targeted figure.

He said during the same period, K126.1 billion was collected as windfall tax; K22.3 billion as company tax and K171.2 billion was collected from mineral royalties.

“In terms of the outturn realised as a percentage of projected revenue, only 34 per cent of the projected mining revenue has been realised in 2008, consequently, the mines contributed a total of K656.2 billion in 2008,” Mwansa said.

He said some mining companies had paid taxes under the new mining fiscal regime but with certain conditions.

“The amounts we have collected do not include certain amounts which some mines have paid, but with certain clauses that these funds should be kept in the control account at the Central Bank until the mines resolve certain issues they have raised with government, so in view of this, government cannot utilise these funds until those issues are resolved,” Mwansa said. “It is like they have paid under protest but all three major companies have paid without conditions and I cannot mention them because we have confidentiality for our tax payer and each one of them is dealing with us in their own way.”

Mwansa explained that during 2008, there were two types of fiscal regimes relating to the mines and in accounting for the targets and what was expected by the government for utilisation, ZRA applied the old regime which ran from January to December 2008 from which K336.7 billion was collected from the mines.

“You will recall that royalty was taxed at 0.6 per cent but from April to December 2008, it became three per cent but when this new regime was announced, we were always removing 0.6 per cent for purposes of our performance and the balance of 2.4 per cent was taken into new regime which the government did not expect to spend since it was not part of the budget,” he said.

Under the new mining revenue regime, the least amount realised was from corporate tax, followed by windfall tax, though the collection of mineral royalty has been above projected revenue.

ZRA had projected to raise K300.5 billion from corporate tax but only collected K22.3 billion. K502.1 billion was projected to be raised from windfall taxes but only K126.1 billion was collected while K114.8 billion was targeted from mineral royalties but a surplus of about K57 billion was collected.

And Mwansa said the medical levy had performed well since inception in 2003.

“Although collected by the ZRA, this is not a tax but a levy which goes to the medical utilisation and it is only collected on [one per cent ] interest earned by account holders and not on savings and since 2003, we have collected a total of K43.4 billion,” said Mwansa. “In 2003 we collected K3.5 billion, in 2004 we collected K5.9 billion, in 2005 we collected K6.1 billion and in 2006 we collected K6.6 billion. In 2007 we collected K8.7 billion and in 2008 we collected K12.6 billion.”

Labels: CHRITICLES MWANSA, ZRA

posted by MrK @ 5:12 PM