ZRA alleges ‘too many fake, wrong documents’ as K17.2 billion VAT claims approved

The Zambia Revenue Authority (ZRA) has audited and approved K17.2 billion worth of Value Added Tax (VAT) for tax claimants.

This is out of the K48.5 billion claims which had accumulated for a period of nine years.

This came to light during a presentation by ZRA’s Commissioner for Domestic Taxes, Joseph Nonde, its engagement with the Chinese Chamber of Commerce in Zambia (CCCZ) in Lusaka on Friday.

Nonde noted that 51 percent of the VAT claims had been in the system for more than three years.

“We are taking long to process the refunds because of too many fake and wrong documents. Help us to improve efficiency in the processing of the refund by avoiding fake receipts, claims that are incorrect and fraudulent,” he said.

Read more: Zambia Revenue Authority pays K15.2bn in VAT refunds

He explained that the incorrect and fraudulent claims had resulted in the authority paying more in VAT claims than it was collecting.

“As you can see from the graph, the VAT claims are higher than the VAT collections. Where are we going to get the money for refunding you if the money that we have is less and you are claiming more?”

“If this trend continues, ZRA has to find money from somewhere for refund, which would be difficult for the government,” he said.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.