ZAMBIA RIPPED OFF …Country loses US$3bn through tax evasion and tax dodging schemes – Mwamba

ZAMBIA loses $3 billion a year from corporate tax dodging schemes by multinationals, Patriotic Front aspiring President Emmanuel Mwamba has said.

Mr Mwamba, the country’s former ambassador to Ethiopia and the Africa Union said reports, among them the Sweet Nothing Report by Action Aid confirmed these findings when it narrowed its interests on Illovo and Zambia Sugar.

He said Sweet Nothings examined the tax practices of one of the world’s largest food multinationals, the Associated British Foods (ABF) group, in Zambia, one of the countries in which it operates.

Mr Mwamba said ABF owned food brands such as Silver Spoon Sugar, Kingsmill Bread, Ryvita and Patak’s, as well as clothing chain Primark.

“Zambia Sugar, which has taken advantage of lawful loopholes in international tax law, and benefitted from tax breaks offered by the Zambian government, resulting in the government losing over millions in tax revenues since 2007: equivalent of 14 times what the UK government has provided to Zambia to tackle hunger and food security over the same period,” Mr Mwamba said.

He said the report had demonstrated that tackling the problem required both national and international action across three fronts: companies’ ingenious financial engineering; weak international tax rules; and government’s deliberate tax policies.

Mr Mwamba however said a time was coming when these loopholes shall be sealed, just taxes will be paid and Zambia will benefit from its natural resources.ZAMBIA loses $3 billion a year from corporate tax dodging schemes by multinationals, Patriotic Front aspiring President Emmanuel Mwamba has said.

Mr Mwamba, the country’s former ambassador to Ethiopia and the Africa Union said reports, among them the Sweet Nothing Report by Action Aid confirmed these findings when it narrowed its interests on Illovo and Zambia Sugar.

He said Sweet Nothings examined the tax practices of one of the world’s largest food multinationals, the Associated British Foods (ABF) group, in Zambia, one of the countries in which it operates.

Mr Mwamba said ABF owned food brands such as Silver Spoon Sugar, Kingsmill Bread, Ryvita and Patak’s, as well as clothing chain Primark.

“Zambia Sugar, which has taken advantage of lawful loopholes in international tax law, and benefitted from tax breaks offered by the Zambian government, resulting in the government losing over millions in tax revenues since 2007: equivalent of 14 times what the UK government has provided to Zambia to tackle hunger and food security over the same period,” Mr Mwamba said.

He said the report had demonstrated that tackling the problem required both national and international action across three fronts: companies’ ingenious financial engineering; weak international tax rules; and government’s deliberate tax policies.

Mr Mwamba however said a time was coming when these loopholes shall be sealed, just taxes will be paid and Zambia will benefit from its natural resources.