• Tax refunds are projected to rekindle microeconomic activity at the local level.
• As at end of September 2021, there were about 3000 audited pending refunds with amounts below K5 million.
• ZRA has started implementation of a more accountable, transparent and predictable refund mechanism.

Zambia Revenue Authority has disclosed that K136 million has been paid to clear outstanding audited refund claims for amounts below K5million for the period 2013 to 2017 from the October 2021 Refunds allocation.

ZRA Corporate and Communications Manager Topsy Sikalinda told Money FM News in a statement that the tax refunds are projected to rekindle microeconomic activity at the local level and enhance liquidity in Small and Medium Scale Entrepreneurs.

“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.” He said.

Mr. Sikalinda stated that 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 Enterprises (SMEs).

“In addition, the initiative to progressively, based on available resources, clear the long outstanding Refunds in a predictable manner 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,” stated Mr. Sikalinda.

He revealed that ZRA has started implementation of a more accountable, transparent and predictable refund mechanism that is aimed at stimulating the growth of the business sector, especially the small and medium scale enterprises.

According to him, 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.