Court reportedly orders logistics firm to pay ZRA over K3.6 million for smuggling, tax evasion

Zambia Revenue Authority (ZRA) says the Economic and Financial Crimes Court has ordered Fonat Freight and Logistics Limited to pay them over K3.6 million after finding the company guilty of multiple offenses under the Customs and Excise Act.

According to a statement issued on Friday by ZRA Corporate Communications Manager, Oliver Nzala, the company was convicted on three counts: importation of goods without making an entry, false representation, and smuggling.

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The court heard that between October 1, 2024, and March 12, 2025, Fonat Freight and Logistics Limited, acting jointly with other persons unknown, illegally imported and possessed large quantities of alcoholic beverages without declaring them to customs authorities.

The smuggled consignment included 60 cases of whisky, 803 cases of Olmeca Tequila, 586 cases of Gordon’s Dry Gin, 625 cases of Johnnie Walker, 65 cases of Jack Daniel’s whisky, 36 cases of J&B whisky, and 84 cases of Amarula, among many other products.

Authorities also seized 60 cases of Heineken lager, hundreds of cases of wine and spirits, and 915 loose bottles of assorted alcoholic beverages.

Nzala stated that the illegal importation deprived the government of revenue amounting to over K2.3 million.

“When the matter came before the court on January 15, 2026, Fonat Freight and Logistics Limited was ordered to pay K3.6 million, covering outstanding taxes and statutory penalties,” he said.

Nzala added that the company was directed to pay K50, 000 in prosecution costs, and that the court further imposed a fine of K9, 600 on all three counts, with a penalty of nine months’ simple imprisonment for the company’s legal representative should the fine not be paid.

Nzala emphasized that ZRA remained firm in its resolve to combat tax evasion and smuggling.
He said the Authority will continue to apply the law to its fullest extent to ensure that all revenue due to the State is recovered.

“The Authority will not relent in its pursuit of tax offenders,” Nzala said, warning that companies and individuals involved in smuggling and other customs-related offenses would face stiff penalties under the law.

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