IT is unfathomable that business owners would attempt to defraud the government of tax.The very nature of the business is meant to provide finanacial benefits to the business owner and bring value to the Government coffers too, so why put your business at risk by breaking the law?
Unfortunately it appears that some traders are still taking the risk and the ever vigilant Zambia Revenue Authority is clamping
down on the vice.
Let those who have ears, hear.
Eaerlier in the week, the Zambia Revenue Authority disclosed that they had suspended and revoked licenses of 25 Clearing and
Forwarding Agents.
ZRA acting Corporate Communications Manager Robert Zawe says the suspensions arise from forgery, false declarations, and
smuggling valued to the tune of K6.5 million.
Mr. Zawe says the move to suspend and revoke licenses is aimed at strengthening the Authority’s momentum towards full tax
compliance and zero-tolerance to fraud and corruption.
He says Clearing agents play a key role in ensuring national security and public revenue collection, and that people involved
must be honest enough.
Mr. Zawe says the Authority will continue plucking out those who aid tax evasion and fail to comply with legal requirements.
He told ZNBC News that smuggling of goods through false declarations, forgery, transit fraud, misclassifications, under-
declarations, and under-valuations is a serious offence and offenders will be dealt with in accordance with the law.
The authority has since warned all Clearing Agents to desist from engaging themselves in the wrong activities to avoid
revocation of their licenses.
We want to congratulate the Zambia Revenue Authority for taking a hard line against smuggling – where tax dodgers lose out
completely.
During the Minister of Finance’s 2021 National Budget presentation to Parliament on 25 September 2020, several proposed tax
amendments were made in an attempt to stimulate economic activity and combat the spread of COVID-19 for implementation on 1
January 2021.
Importantly is an increase in the exempt threshold for PAYE, a reduction of the corporate income tax rate from 35% to 15% for
specified taxpayers; and the removal of import duties on selected items.
Also a proposal to increase the number of years for claiming the 10% development allowance from three to five years. This
allowance is applicable to persons growing rose flowers, tea, coffee, banana plants or citrus fruit trees or other similar plants or
trees;
As well as a local content allowance for income tax purposes for utilization of selected local raw materials and increasing the tax
rate on betting from 10% to 25% of gross takings;
Employers of persons with a disability have also been given a tax break.
Corporate income tax rate was reduced from 35% to 15% on income earned by hotels and lodges on accommodation and food services VAT is now zero-rated on equipment used for full body sanitization to combat the spread of the COVID-19 pandemic and tractors above 90 horsepower.
ZRA says it will not tolerate any forms of smuggling now that the borders in the regions are opening following the easing of
Covid-19 measures.
The Authority says that concealing or smuggling of any product is a crime in Zambia.
More recently, ZRA disclosed that they were working closely with the law enforcement agents and the judiciary to ensure
successful prosecution of offenders
It is hoped that those tasked with clearing goods will find themselves on the right side of the law.
