ZAMBIA IS LOSING 3 BILLION DOLLARS ANNUALLY TO ILLICIT FINANCIAL FLAWS!

The 5th Zambia Alternative Mining Indaba is concerned that Zambia is said to be losing an estimated US$3 billion (approximately K36 billion) annually to Illicit Financial Flaws.

According to the National estimates of the percentage of the population falling below the poverty line conducted by the Central Statistics Office stands at 60.5%.

And 2016 ZAMI Chairperson Cleophas Lungu is calling on government to conduct a cost benefit analysis of all existing Double Taxation Agreements with the intent to re-negotiate the terms so that they benefit the country.

Last year Minister of Finance Alexander Chikwanda announced a total budget of K51.3 billion which was around 6.5 billion dollar at the time indicating that IFFs in Zambia are 70 per cent of the national budget.

Father Lungu said if these funds are tracked they could be used to finance the provision of public services such as health and education, as well as critical national development projects such as roads, railways, bridges and power infrastructure which are all key to Zambia’s industrialization.

Presenting the 2016 ZAMI Declaration, Fr. Lungu noted that government needs to review or terminate tax incentives given to mining companies, especially those proven to engage in tax dodging tactics, as well as domesticate international policies and treaties that are aimed at curbing the current tax competition.

The Indaba also noted with concern that the continued dependence of the country on copper mining as a main economic activity, adding that has Zambia continued to rely on the sales of raw products that yield very little returns in terms of revenue.

Fr. Lungu further said that there is also need to introduce policies that will support Diversification into other non-traditional exports, specifically focusing on agriculture and tourism.

Pupils in rural zambia

Meanwhile the Zambia Council for Social Development (ZCSD) said Zambia should develop a system that will help track financial flaws in order to maximize tax collection.

ZCSD Executive Director Lewis Mwape says there is a serious need to address the loopholes in order enhancing tax revenue on behalf of government.

Meanwhile Mr. Mwape has accused some officers at Zambia Revenue Authority of being reluctant to block the loopholes because they are beneficiaries of the scheme.