ZRA grants tax deferment

Zambia Revenue Authority -ZRA- Commissioner General Berlin Msiska says the authority has granted tax deferment to some mining firms following cash flow challenges in the sector.

Mr. Msiska says the deferment was given after the said firms applied because of challenges facing the sector and was granted in accordance with provisions of the Mines and Minerals Act.

He told journalists in Lusaka that one of the deferment benchmarks that ZRA uses is a mining firm having a negative cash flow.

Mr. Msiska adds that some firms that applied have not been granted tax deferment but refused to give names of the firms granted because of privacy issues.

He has however, stated that deferment does not mean write off.

Meanwhile, Mr. Msiska says tax collection by ZRA has not been as expected owing to a recent change in mining tax regime.

He says the authority will have to adjust its revenue estimates targets and the Ministry of Finance coming up with ways of bridging the gap.

And officially opening a two day workshop on Transfer Pricing for the United Nations African Tax Administration Forum in Lusaka this morning, Mr. Msiska said there is need for a legislative framework such as Transfer Pricing and Thin Capitalization to curb the vice.

He also noted the need to design tax policy in a way that a fair share of revenue is collected without discouraging investment.