The Zambia Revenue Authority (ZRA) has noted that Ethanol smuggling is slowly on the rise leading to the manufacturing of illicit alcohol locally known as Tujili-jili or Junta.

ZRA Commissioner General Kingsley Chanda says the agency will carry random and extensive inspections on all individuals and businesses suspected to be involved in tax evasion through the manufacturing of illicit alcohol.

Mr. Chanda says the Authority wants to ensure that there is sanity and tax compliance in the brewing industry whether opaque or clear beer.

“For that reason, the Authority will work closely with the Opaque Beer Association of Zambia (OBAZ) and other stakeholders to reorganize and reduce revenue leakages for government in the brewing industry”, Mr. Chanda has disclosed.

He has further disclosed that the Commissioner General of the Zambia Revenue Authority Kingsley Chanda met with the Opaque Beer Association of Zambia this week and resolved among other things to improve tax compliance in the beer industry, level the playing field and carry out joint assessment to determine installed capacity of all players in the industry.

The ZRA Commissioner General says this will ensure that all players pay their fair share of taxes, including penalties and interest to the national treasury.

He adds that this will also result into review of the importation of ethanol which is used to manufacture illicit beer that has serious health implications on the youths in Zambia.

Mr. Chanda further discloses that the review of importation procedures for ethanol which is used to manufacture illicit alcohol will protect the vulnerable youths who are more prone to the abuse of illicit drugs and alcohol.

The Commissioner General has warned all tax evaders to prepare for grave consequences as provided under the law.