Maravi

ZRA collects K15.5 trillion in 2004-2009 trade taxes

ZRA collects K15.5 trillion in 2004-2009 trade taxes
By Fridah Zinyama
Wed 28 Apr. 2010, 04:00 CAT

ZAMBIA Revenue Authority (ZRA) Commissioner General Chriticles Mwansa has said the country has collected a total of K15.5 trillion in trade taxes over the period 2004-2009 since the inception of the COMESA-FTA.

And Mwansa added that Zambia has lost about K3.3 trillion and K0.7 trillion under the COMESA-FTA implementation, representing a 21 per cent of the total revenue foregone by government in trade taxes during the period.

The COMESA-FTA was launched in 2000 and currently has 13 member states namely (Burundi, Djibouti, Egypt, Kenya, Libya, Mauritius, Malawi, Madagascar, Rwanda, Seychelles, Sudan, Zambia and Zimbabwe) that grant import (customs) duty-free importation on various commodities.

During a breakfast meeting organised by Zambia Association of Manufacturers (ZAM), Mwansa said the K15.5 billion in trade taxes indicated growth from K1.8 trillion to K3.5 trillion which translated to a growth of 90.6 per cent.

“The Value for Duty purposes (VDPs) grew from K11.7 trillion to K24.3 trillion in the period 2005 to 2009, translating into a growth of K12.6 trillion or 107 per cent,” he said.

Mwansa said the country also recorded some losses arising from the implementation of the COMESA-FTA.

The revenue loss arising from the implementation of the COMESA-FTA indicates that there has been marginal increase in the period 2005-2009 from K120 billion to K127 billion by K6.32 billion or 5.2 per cent.

In the period 2005 to 2009, a total of K709.7 billion in customs duty on imports originating from the COMESA member states was forgone.

Mwansa said when compared to the revenue loss arising from the implementation of various concessions and rebates, the proportion of the revenue loss arising from the implementation of the COMESA-FTA had declined.

“For instance in 2005, revenue loss on account of the COMESA-FTA was 42 per cent while in 2009 this accounted for 12.4 per cent of the total revenue loss,” he said.

Mwansa said the impact of the COMESA-FTA on the trade taxes and subsequently the trade revenues had been significant though there was a decline.

“The decline was attributed to the implementation of the SADC phase down tariff reduction that has provided alternative sources of goods and raw materials that qualify for import duty free at importation,” he said.

Mwansa said the reasons the government gave to forgo revenues were mainly to attract investment, encourage certain sectors to grow and protect certain sectors and infant sectors.

Labels: TAXATION, ZRA

posted by MrK @ 4:28 PM