‘REFORM VAT’ – ZRA OWES K36BN IN VAT ARREARS

By BUUMBA CHIMBULU
ZAMBIA needs to reform the Value Added Tax (VAT) as the country cannot afford to have a tax that creates debt which currently stands at K36 billion as this is completely unacceptable, says former Zambia Revenue Authority (ZRA) Commissioner General, Kingsley Chanda
Dr Chanda suggested that if Zambia wanted VAT, Government must allow ZRA to refund all due refunds in full.
He said this yesterday in Lusaka at the handover ceremony of the ZRA Commissioner General’s Office to Mr Dingani Banda.
“We grew VAT by 300 percent in 2017. Even the IMF team was shocked. This followed introduction of Withholding VAT and collection at source. But by that time we had over K8 billion in refund arrears. So I made proposals to government to stop the bleeding and refund arears.
“I was almost killed. Both my staff and the business community called for my blood. We can’t afford a tax that creates debt. It is as simple as that. The gross VAT collections are enough to deal with new claims and not arrears. From K8 billion when I called for reforms, the debt now is K36 billion and completely unacceptable,” Dr Chanda said.
He also encouraged his successor, Mr Dingani Banda to ensure that the ZRA funding model was modernised.
Dr Chanda said this was a lucrative business investment that must be over-prioritised because the dividends were obvious and immediate.
“You do not need to continue writing letters and reminding the ministry to fund ZRA. This is not a sunk cost,” he stated.
Dr Chanda also emphasised the need to continue investing more in technology and simplify compliance requirements.
He stated the need to enhance ZRA Innovation Centre and strategic partnership with the Copperbelt University.
Dr Chanda urged the new Commissioner General not to tolerate smuggling in any form.
He also said: “Do not waste time on who likes you; who hates you, who said what when you were out of ZRA. That will drain you and result in negative energy. Forgive and forget – focus on the bottom line.
“That is what the President will appreciate as a thank you for selecting you out of hundreds of capable Zambians. I can assure you that consistent good revenue performance will keep you in the job.”
Ends.