Maravi

ZRA to consider reviewing Statutory Instrument on mines

ZRA to consider reviewing Statutory Instrument on mines
By David Chongo in Solwezi
Mon 01 Feb. 2010, 04:00 CAT

ZAMBIA Revenue Authority (ZRA) Commissioner General Chriticles Mwansa has said there is a possibility ZRA will consider liaising with government on reviewing the Statutory Instrument 69 of 2008 which gives mining companies a waiver on export tax in order to boost revenues this year.

Speaking to journalists at Royal Solwezi Hotel when he visited the Solwezi ZRA office on Friday, Mwansa said the waiver was put in place to cushion mining companies as copper prices had gone down from the impact of the global economic meltdown.

He said the copper concentrates had been given a waiver as most of it was processed outside the country before local processing plants increased their capacity.

Mwansa said since the increase in facilities for processing copper concentrates within the country coupled with an upward surge in prices, there was need to revisit the Statutory Instrument to allow ZRA collect more export tax compared to last year.

While acknowledging that ZRA did not have the power to revoke or maintain the Instrument as it was the prerogative of the minister, Mwansa hoped that it could be reviewed and that as ZRA, they did not anticipate the waiver to continue being active this year.

"This year I don't see us giving a waiver but of course it's up to the minister (to revoke or maintain it)," he said.

And commenting on the emerging economic importance of Kipushi border post with a link to the Democratic Republic of Congo (DRC), Mwansa said, even though historically it was difficult to conduct business across the post, there was now potential for growth in the area.

He said in comparison with other economic border posts in the country, Kipushi collected little revenue because it had for a long time been a control point more than an economic point.

"We collect very little (revenue) from there but we are seeing an upcoming economic border post; it was more a control point than a revenue point though there is potential for revenue collection; it is not a money spinner for now," he said.

Mwansa expressed optimism that with the economic influence of Katanga province in the DRC, Kipushi would be an important border post for ZRA not only for revenue collection but also as an important point for controlling importation of prohibited products.

"Kipushi is an important border post for us. We anticipate activity to increase and that will give us impetus to capture revenue from Congo but also control prohibited products," he said.

He said ZRA was treating the success of Kipushi border as a concerted effort and would therefore work with the government, immigration and the police to make it a convenient and effective revenue collection point.

Mwansa also reiterated that Solwezi was receiving due attention from the revenue authority as the mines have had an economic spiral effect on other sectors resulting in a boom in employment and increased commerce from which ZRA collects its taxes.

Labels: CHRITICLES MWANSA, DRC, KIPUSHI BORDER POST, MINING, TAXATION, ZRA

posted by MrK @ 9:08 AM