By BUUMBA CHIMBULU
ZAMBIA Revenue Authority (ZRA) has cleared outstanding audited refund claims for the amounts below K5 million for the period 2013 to 2017, as it commences implementation of a more accountable, transparent and predictable refund mechanism.
From the October 2021 refund allocation, the Authority paid out K136 million to clear outstanding refunds for amounts below K5 million for the period 2013 to 2017.
This was according to ZRA Corporate Communications Manager Topsy Sikalinda in a statement yesterday.
“Management has further outlined that as at end of September 2021, there were about 3000 audited pending refunds with amounts below K5 million for the periods between 2013 and September 2021, which are for 744 taxpayers, mainly Small and Medium Entrepreneurs (SMEs),” Mr Sikalinda indicated.
He said the tax refunds are projected to rekindle microeconomic activity at the local level and enhance liquidity for the SME sector.
“The positive assumptions are that the liquidity being injected into the small businesses will further assist to mitigate the financial shocks in the business environment especially during this period of COVID-19,” Mr Sikalinda said.
To stimulate the growth of business sector, especially the SMEs, Mr Sikalinda said the Authority had commenced the implementation of a more accountable, transparent and predictable refund mechanism to support the growth of businesses.
He explained that the refund payment process was being done on an equitable First in First out (FIFO) basis.
He said this demonstrates the Authority’s intention of building goodwill and trust with its strategic partners, the business community, who are also expected to practice voluntary compliance on all tax matters.
“The Authority will continue working closely with all stakeholders to ensure that the backlog of audited refunds is progressively liquidated in a predictable manner and businesses continue operating in a thriving environment in line with the 2022 proposed budget anchored on the seeds of prosperity,” Mr Sikalinda said.
