Monday, 7 November 2011


the value added tax administration forum in africa (vada) has disclosed that about 80 percent of the informal sector in africa is evading tax.
the forum attributes this to lack of strong tax systems in place.
speaking to journalists today in lusaka, outgoing chairperson samuel ogungbesan said most african governments are failing to collect enough revenue through taxation in the informal sector because the volume of business which is conducted by the businessmen and women can not be determined.
mr. ogungbesan has stated that for african countries to improve the collection of revenue through tax in the informal sector, there is need for governments to introduce presumptive tax regimes and adopt cash registers which will keep account of what each business is making.
he stressed that there is need for close collaboration between institutions tasked with the duty to collect various taxes and ensure that standards are followed to avoid tax evasion.
the theme for this year’s conference is “the role of vat in enhancing economic growth”.
the 14th vada annual conference is taking place at intercontinental hotel in lusaka.
mr. ogungbesan has stated that the organization has selected 3 technical papers to bring to the fore of the current challenges affecting vat operations across african countries beginning with the optimization of vat collection in the informal sector and benefits of tax integration in relation to vat.
and speaking at the same function finance and national planning minister alexander chikwanda pointed out that the problems facing vat administrators, particularly in africa are numerous and complex.
mr. chikwanda noted that africa is faced with challenges in tax collection such as weak infrastructure like transport links, communication networks as well as the systems used within the tax administration which continue to hamper the efforts being made by various governments.
and zambia revenue authority (zra) director general berlin msiska observed that efficient and effective administration of consumption taxes especially vat is becoming more important and of mutual concern to all of africa.
mr. msiska added that the contribution of trade taxes to the overall tax has continued to decline on account of the trade protocols that countries have entered into.

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