Business

ZRA goes K480 million above target

ESTHER MSETEKA, Lusaka
THE Zambia Revenue Authority (ZRA) has exceeded the 2017 operational target for the first five months by K480 million, representing 3.3 percent above target.
This is as a result of measures and initiatives being implemented such as collecting value added tax (VAT) at source.

ZRA senior corporate communications officer Oliver Nzala said in a statement yesterday that so far, K1.4 billion has been collected from January 1 to May 31, 2017.
Mr Nzala said the authority is confident of meeting the revenue collection target of over K36.7 billion by the end of the year.
“Against the 2017 operational target, ZRA is K480 million or 3.3 percent above target for the first five months. In the 2017 national budget, Parliament approved a revenue target of K37.622 billion subject to the legislation of specific tax measures, among which was the tax on copper concentrates and border crossing fees.
“However, Parliament did not legislate some of the proposed tax measures resulting in a revision of the 2017 operational target for ZRA to K36.774 billion,” he said.
Mr Nzala said ZRA will also introduce fiscalisation to have an improved level of domestic VAT collections through monitoring of sales at the point of sale.
Fiscalisation refers to configuring of fiscal devices to enable them to record sales and other tax information on the read-only fiscal memory at the time of sale for use by the tax authorities in VAT administration.
He said ZRA will soon conduct forensic audits on large mining companies to appreciate their various complex financial processes they go through when generating incomes that are used for tax purposes and this will be done by an independent auditor.
Apart from the decentralisation of anti-smuggling operations, Mr Nzala said the authority has also recruited 45 tax inspectors to enhance revenue compliance and enforcement, especially in the retail sector.
Earlier this year, ZRA also introduced the tax amnesty to provide relief to taxpayers on interest and penalties while collecting the principal tax and has also adopted zero tolerance to smuggling and tax evasion.

 


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