PUNISH ZAMBIA SUGAR

Mon, 11 Dec 2017 12:44:25 +0000

… state must sanction Zambia Sugar for tax avoidance

By AARON CHIYANZO

GOVERNMENT, through Zambia Revenue Authority must take punitive sanctions against Zambia Sugar, following revelations that its holding company, Illovo, avoided paying $3 million tax, through dubious means, former UPND vice president for politics Canisius Banda has said.

Dr Banda said if indeed the company avoided paying about US$3m to government through dubious structures and dealings as exposed in the Paradise Papers, then punitive action was needed.

And Dr Banda warned that if not carefully monitored and stopped, this was one of the many ways that imperialists use to effect regime change in targeted States.

Dr Banda said that Zambia was highly indebted and in a poverty situation largely because of the ongoing nefarious and fraudulent activities of corporate entities and individuals.

He said in an interview that any company that avoided or contrives to avoid paying tax was a veritable enemy of the State.

Dr Banda pointed out that Zambia today was said to be the third hungriest country in the world and one of the most highly indebted countries in Southern Africa because of tax fraud by corporate entities.

He reiterated that if indeed it is true Zambia Sugar had avoided paying US$3m to government through dubious structures and dealings then appropriate punitive sanctions should be taken.

Dr Banda said that like all tax, Corporate tax was a significant source of government revenue.

 “If indeed it is true that Illovo, Zambia Sugar avoided paying US$3m to government through dubious structures and dealings then appropriate punitive sanctions against this company should be taken. Any company that avoids or contrives to avoid paying tax or of this tax is a veritable enemy of the State.

“It is because of such thefts against our government that interest rates remain high and prohibitive for most citizens making the credit that they need to fight poverty inaccessible. This conduct kills people. Cholera killed Zambians this year,” he said.

Dr Banda also said that when foreign exchange inflows remain low, the currency would depreciate, credit would be expensive, salaries would be delayed or not paid at all, the cost of living would be high and that poverty would increase.

Meanwhile, Dr Banda reiterated that if the US$3m was paid to the government, clean and safe water would have been reticulated to needy citizens and deaths would not have occurred.

He pointed out that government could build the required additional schools and health facilities and subsequently the wellbeing of citizens would be enhanced with such credit.

Dr Banda said that all major developments were proving difficult now because of such criminal business acts.