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(LUSAKATIMES) TIZ demands action on allegation that Dr Musokotwane wrongly gave tax holiday to a firm

TIZ demands action on allegation that Dr Musokotwane wrongly gave tax holiday to a firm
TIME PUBLISHED - Wednesday, December 21, 2011, 9:21 am

TRANSPARENCY International Zambia (TIZ) says revelations that the former Minister of Finance and National Planning Situmbeko Musokotwane gave Pepsi Cola Company a K10 billion tax holiday is an indication that leaders in the former administration had no fear of the law.

TIZ president Reuben Lifuka said former Government leaders broke the law with impunity as they believed they would be in power for a much longer period. Mr Lifuka said this in Lusaka yesterday when he featured on ‘Let the People Talk’ programme on Radio Phoenix.

He said former Government leaders who abused their authority or misapplied funds should be prosecuted. Mr Lifuka said there should be no sacred cows, and that those who broke the law should dance to the music. He said no one should be immune to prosecution when enough evidence is presented.

“Those who flout financial regulations should be prosecuted. There should be no sacred cows,” he said.

Minister of Finance Alexander Chikwanda said he is not ready to comment on the matter now.

“I will only issue a comprehensive statement after referring the issue to the relevant organs of government such as the Attorney-General’s Chambers and Cabinet,” Mr Chikwanda said.

When contacted for a comment, a Pepsi Cola Zambia senior official, who did not want to be named, referred all queries to the company’s chief executive officer, a Mr Shankar.

“I have seen the article in your paper but the best person to comment on this matter is Mr Shankar who has been named,” he said.

Mr Shankar’s mobile phone was off the whole day yesterday.

Zambia Revenue Authority Commissioner-General Berlin Msiska said he is unable to comment on the Pepsi tax rebate.

“I am still settling down and I do not have enough information on the matter. It would be inappropriate for me to comment,” Mr Msiska said.

And Trade Kings Limited, a local manufacturing company says the tax holiday incentive is open to irregularities and abuse by certain companies, especially foreign.

Company corporate affairs manager, Bright Chunga said in an interview in Lusaka yesterday that some foreign firms have closed their companies after the expiry of the tax holiday incentive.

“I recall at some point, Government gave some furniture shops and others dealing in suits a tax holiday but most of them left after the expiry of the period. So this incentive can encourage irregularities,” he said.

Dr Chunga said since the establishment of Trade Kings in 1995, it has not received a tax holiday.

“Trade Kings has never ever been given a tax holiday since inception,” he said.

He said the investment licence is the only tax holiday which applies to every established company.

Dr Chunga said the Investment Act, stipulates the types of tax holidays that apply to various investments.

“I know of a tax holiday which applies when a company invests over U$500,000. However there is another type of holiday which is discretional. This is what the investment Act stipulates,” Dr Chunga said.

The Daily Mail has revealed that Dr Musokotwane authorised a K10.8 billion tax holiday to a company that produces Pepsi Cola in Zambia.

Labels: BERLIN MSISKA, CORRUPTION, REUBEN LIFUKA, SITUMBEKO MUSOKOTWANE, TAX EVASION, TIZ

posted by MrK @ 4:02 PM