PSDA praises ZRA VAT refund to mines

Sat, 31 Dec 2016 10:07:51 +0000

By BUUMBA CHIMBULU

EFFORTS by the Zambia Revenue Authority (ZRA) to pay the mines Value Added Tax (VAT) refund of K2.6 billion is a sign of Government’s commitment to support the private sector, says Private Sector Development Association (PSDA).

PSDA chairperson Yusuf Dodia said in an interview that the commitment exhibited by the ZRA was a sign of supporting the private sector.

Mr Dodia said it was important for Government to honour its commitment because business developed more confidence in its management.

“This is a good thing, it is very important for Government to honour its commitment. This is because confidence in dealing with the Government can be maintained.

“I hope that as we go into 2017, Government will continue to honour its responsibility to the private sector and ensure that the sector is paid in a timely manner,” he said.

Mr Dodia explained that the private sector resorted to borrowing from commercial banks when Government did not pay them their money.

He further explained that borrowing was, however, currently expensive due to high interest rates which ranged between 30 and 40 percent.

“The interest rate in Zambia today range from 30 to 45 percent when you borrow, so most private companies would rather get their money paid by the Government so that they avoid borrowing from the banks,” he said.

Mr Dodia has since urged Government to continue with such efforts going forward.

“I would urge Government to continue on this mechanism of trying to clear the domestic debt and they should do it across the board, they should also pay the suppliers who are local companies.  “It is very important that they should be cleared as they are using that money to grow their business and to continue investing in the Zambian economy,” he said. ZRA recently announced that it had paid the mines K2.6 billion, remaining with the outstanding amount of K2.4 billion from the K5 billion it had been owing since 2014.