The Economic Association of Zambia observes the need for the Zambia Revenue Authority to seal loopholes in Zambia’s tax system.
EAZ Vice President Dr. Austin Mwange says there is need for ZRA to ensure that they safeguard against loopholes manipulated through the global tax planning by Multi-national Corporation and some unpatriotic Zambians.
Dr. Mwange says it does not make economic sense for the country spend hugely in VAT refunds and earn less in terms of taxes.
The EAZ Vice President said this when he featured on Money FM Business Radio’s Policy, Power and Money Programme that airs every Mondays and Thursdays at 9hrs.
Dr. Mwange said it is not a secret that government has been spending more in terms of VAT refunds more especially in the mining sector which he said is not sustainable.
He said in fact some VAT claims have been done fraudulently and hence the need to introduce Sales Tax.
He hopes that the rate of the Sales Tax will be less than 16 percent when it is implemented starting 1st April, 2019.
He argued that since the country introduced VAT, it has not helped in terms of economic diversification.
Meanwhile, Dr. Mwange said Zambia is not in a financial crisis as claimed by some stakeholders.
He said the offers from some mine owners in trying to buy government’s shares in their operations shows that Zambia’s economy is of good sound.
“How can you buy government shares in a country whose economy is bad? This shows that the country’s economy is stable and the investors have seen it,” he said.

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