Maravi

ZICA bemoans lack of initiatives on tax

ZICA bemoans lack of initiatives on tax
By Sututu Katundu
Fri 11 Feb. 2011, 04:00 CAT

THE Zambian tax regime has been largely influenced by donors than by initiatives of the government, says ZICA.

Presenting a submission before the Parliamentary Committee on Estimates on Zambia’s Tax System, Zambia Institute of Chartered Accountants (ZICA) president Chintu Mulendema said government’s lack of initiatives on the tax system was leading to ineffective implementation of tax legislation in as far as taxation of mining companies was concerned.

Mulendema said the Zambia Revenue Authority (ZRA) needed to work with other institutions in order to effectively combat tax evasion schemes.

He also said the indiscriminate granting of tax holidays by the Zambia Development Agency (ZDA) will ultimately negatively impact the performance of ZRA in as far as income tax collections is concerned.

He said a number of existing and new business in priority sectors have been granted tax holidays that exempt them from paying tax for five years from the year that they first make profits.

Mulendema said ZRA should effectively audit large-scale extraction companies.

“This is critical especially at this critical moment when the prices of minerals are good and prospects look better,” said Mulendema.

Labels: TAXATION, WINDFALL TAX, ZICA, ZRA

posted by MrK @ 2:49 PM