GOVERNMENT has launched the third Extractive Industry Transparency Initiative (EITI) report with the net difference made by mining companies and revenue received by Government and its agencies amounting to KR8.81 million. Minister of Mines, Energy and Water Development Yamfwa Mukanga attributed the net discrepancy to import value added tax (VAT) and non-refundable VAT, and failure by Zambia Revenue Authority (ZRA) to record some payments made by mining companies.
Mr Mukanga said this when he launched the third reconciliation report in Lusaka last week. He said Zambia has successfully managed to produce two reconciliation reports based on the 2008 and 2009 financial years respectively. “The 2010 reconciliation report made a lot of improvement compared to the previous report, which is indicated by the reduction of the net discrepancy.
The reported payments in 2010 by mining companies have gone up to KR3.794 billion (K3, 794 trillion) compared to KR2.603 billion (K2.603 trillion) paid in 2008 and KR1.737billion (K1, 737 trillion) paid in 2008,” he said. Mr Mukanga urged the Zambia EITI council to continue producing reconciliation reports on schedule and strategise how the country will implement EITI in the post compliance period. He said the council should also consider expanding the scope of EITI to include other sectors. The third report was produced based on the 2010 financial year and is the first reconciliation report to be produced after becoming EITI compliant on September19, 2012.