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Friday, 23 November 2012

Monitoring Revenues

GRZ is pressing ahead with the proposal in the 2013 Budget to make it mandatory for ministries, provinces, spending agencies and revenue collecting statutory bodies to deposit all collections in form of fees and fines directly to the treasury from January 2013. All institutions would deposit money through revenue transit accounts at commercial banks. Commercial banks have already signed service legal agreements that would compel them to remit funds to the Bank of Zambia within 24 hours.

An interesting development alongside this is that GRZ is already rolling out a pilot that will allow people to pay fees for passports and other citizenship fees through Indo-Zambia Bank. This is intended minimise human contact with cash especially in areas where banking services are available. The pilot is would focus on Lusaka, Livingstone, Chipata, Kabwe and Ndola with view other provincial centres to follow.

Both initiatives are certainly long overdue. Particularly the Indo-Zambia pilot. The only problem there is how this is rolled out across critical areas like police fines, etc. It is there where corruption is rife. And then difficult questions follow : how was Indo-Zambia was selected? Was this through competitive bidding? Related to that, how much is Indo-Zambia making from the process? Is the public now going to pay more for these processes? Who pays? These questions are important especially if the idea is rolled out more widely.

2 comments:

  1. They know how getting money...
    They should act instead of speaking...

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    Zambia Says Tax Avoidance Led by Miners Costs $2 Billion a Year
    By Matthew Hill - Nov 25, 2012 12:57 PM GMT+0100

    Zambia, Africa’s biggest copper producer, said it’s losing as much as $2 billion annually to tax avoidance, with the mining industry the biggest culprit.

    Only one or two mining operations are actually declaring positive earnings, Deputy Finance Minister Miles Sampa told reporters in Lusaka today.

    “The other mines for one reason or another, some genuine, some not, are always making losses,” Sampa said. “Most of it is due to transfer pricing or tax avoidance. We’re looking at developing a law that will criminalize false reporting.”

    Zambia’s governing Patriotic Front has opted not to impose a windfall levy on miners in favor of optimizing tax collection and doing away with fiscal incentives. Barrick Gold Corp. (ABX), Vedanta Resources Plc, Glencore International Plc (GLEN) and First Quantum Minerals Ltd. (FM) all operate mines in the country.

    Businesses commonly avoid paying tax through transfer pricing, which distorts inter-division transactions so that a Zambian subsidiary appears to suffer a loss, Sampa said. In other cases, parent companies have loaned money to local units at interest rates higher than the market, creating losses.

    A change in the law is being pursued to close loopholes that cost Zambia at least $1.5 billion a year, said Sampa.

    “How many hospitals can that build?” he asked “How many roads can that help us to develop?”

    To contact the reporter on this story: Matthew Hill in Lusaka at mhill58@bloomberg.net

    To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

    ReplyDelete
  2. Sampa, START WORKING !!

    http://www.steelguru.com/sfTCPDF/getPDF/MjAyNjk1/Zambia_lost_an_estimated_income_of_USD_175_million_in_tax_revenue_between_2003_and_2008.html

    NGOs report mining giants Glencore and Quantum alleging fiscal crime in Zambia

    http://owni.eu/2011/04/12/exclusive-ngos-report-mining-giants-glencore-and-quantum-alleging-fiscal-crime-in-zambia/


    Mopani report

    http://www.scribd.com/doc/48560813/Mopani-Pilot-Audit-Report

    http://www.scribd.com/doc/48560609/Mopani-is-Dodging-Taxes-joint-CSO-Press-Release-in-Zambia

    http://www.postzambia.com/post-read_article.php?articleId=18078

    http://www.scribd.com/doc/48560423/CTPD-Fools-Paradise-Zambia-Mining-Tax-Regime-Briefing-Paper-final


    Mopani should be punished for tax evasion - Mukanga
    http://www.postzambia.com/post-read_article.php?articleId=18305


    VIDEO

    http://www.zambian-economist.com/2012/10/zambia-good-copper-bad-copper_4.html

    http://www.lusakatimes.com/2012/11/15/zambia-good-copper-bad-coppera-documentary-zambian-tv/

    ReplyDelete

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