Sunday, 7 September 2008

Zambia: ZRA Rakes in K250 Billion From Mines

The Times of Zambia (Ndola)

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THE Zambia Revenue Authority (ZRA) collected K255.6 billion in mining taxes in July under the new mining fiscal regime.

Of this amount, K109.5 billion accounted for windfall tax, K105.1 billion for company income tax and K41.0 billion from mineral royalty tax.

All the mining companies complied with the new tax regime and paid mineral royalty at 3.0 per cent.

Speaking at the ZRA second quarter media briefing in Lusaka yesterday, ZRA commissioner general, Chriticles Mwansa said the total amount paid under the mineral royalty tax in the second quarter stood at K70.54 billion of which K6.39 billion, K29.67 billion and K34.48 billion was collected in April, May and June respectively.

Mr Mwansa said mineral royalty paid so far in the last two months under the new mining fiscal regime averaged K25.75 billion per month, compared to K5.2 billion per month that the mines used to contribute to the treasury previously.

The new mining fiscal regime came into effect on April 1, and the first returns for mineral royalty were due in May.

Mr Mwansa also said ZRA collected K3, 179.9 billion in gross taxes while refunds stood at K777.9 billion representing 24.5 per cent of gross taxes.

He explained that after refunds totaling K777.9 billion, the net tax take stood at K2, 402.0 billion against a target of K2,153.1 billion, registering a surplus of K248.8 billion or 11.6 per cent above target.

"This surplus is attributed to higher tax revenue collection recorded largely under company tax, Pay As You Earn (PAYE), withholding tax, mineral royalty, excise duty and trade taxes," he said.

Mr Mwansa also said ZRA had embarked on targeted anti-smuggling operations in Eastern Province to curb smuggling of unfortified sugar into Chipata and other districts in the province.

He said the operations involved day and night patrols along the border, warehouse searches and mounting of roadblocks on the Great East Road to check on any smuggled goods.

ZRA has also installed a mobile road communication network to enable staff communicate effectively whilst carrying out the anti-smuggling operations.

And Mr Mwansa said ZRA had recorded a tremendous improvement in clearance time for imports at Chirundu and Livingstone ports.

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Clearance of trucks had been reduced to about six minutes compared to the previous two days or more that was spent on physical inspection.

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