Wednesday, 7 December 2011

zambian treasury losing 12billion kwacha every year through tax invasion by sabmiller

action aid has reiterated that government is losing about 12 billion kwacha every year from zambian breweries under its parent sabmiller due to the tax loopholes in the zambian tax system.
according to action aid, sabmiller is also allegedly eluding paying tax to other developing countries in africa and is making them to lose about 20 million pounds in tax revenue which it says can help about 250,000 children in school if collected.
action aid economic justice campaign officer chris jordan says desperation for revenue amongst most african and european countries especially with the euro zone is making certain countries like zambia lose a lot of revenue due to engagement of companies who are given tax holidays and incentives.
mr jordan has stated that foreign investors like sabmiller were it was revealed that it eluded about $70 million tax payment in africa is undermining aid coming from foreign donors such as the united kingdom and the united states of america.
he has explained that companies like sabmiller which operates as zambian breweries is eluding the zambian revenue authority by pay tax haven nations like switzerland and the netherlands were they own multinational companies.
he advised that the situation of eluding tax by companies like sabmiller in places were they operate can only be averted if tax haven nations like switzerland begin to cooperate.
he has reminded all the investors operating in the country especially those in mining as well that the organisation is not taking anti-business stance in making revelations but only trying to ensure that transparency becomes the norm of the day.
And centre for policy trade development executive director saviour mwambwa questioned what is happening to the audit report on the mines especially in terms of tax payment and company production.
mr mwambwa also pointed out that there is need for government to carry out a cost benefit analysis of concessions which are being given to most investors especially those in the mining sector if more revenue is to be raised.
he has stated that the contribution of the mining sector to the zambian treasury is still minimal hence the need to look at the tax policy and incentives given to investors

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