ZRA pounces on K520 million tax evaders


THE Zambia Revenue Authority (ZRA) has from January to September 2016 realised K520 million  from tax cases which were investigated during the period under reveiew, says director (inspections) Moses Shuko. Speaking at a press conference in Lusaka on Tuesday, Mr Shuko said out of the cases worth 520 million, 34 of them had been handled by the commission. “Total number of cases handled under investigations from January to September is 34 and in terms of total assessment raised from investigation cases is K520 million and 26 case are to do with retail sector,” he said. Meanwhile, ZRA commissioner general Kingsley Chanda said total revenue collection currently stood at K23.4 billion against a target of K23.8 billion. “Our total collections so far stands at K23.4 billion against a target of K23.8 billion, so we were under target by K318.7 million,” he said. Mr Chanda also said ZRA had proposed to improvements in the tax legislation to ensure that the informal sector was taxed. He explained that the legislation among others consisted of stiffening the penalty regime which was weak in the informal sector. “We know that the informal sector has the biggest economic activities in this country and most of these people are not registered for tax, so we have strategies such as we are proposing some improvements in our legislation to ensure compliance. “This will relate to the penalty regime. We feel some people in the informal sector are not paying tax because the penalties are very weak. We have had convictions in the past where people are fined K200 and they walk away, so now we intend to stiffen the penalties for tax evasion in the informal sector,” he said. Mr Chanda further said ZRA would also partner with the councils countrywide in taxing the informal sector while simplifying the payment system.