THE Zambia Institute of Chartered Accountants (ZICA) has called on Government to strengthen the tax legislation to prevent tax avoidance by some firms in the country.
The institute has also called on Government to introduce a planning and budgeting Act to ensure that there is no diversion of funds to other projects.
ZICA chief executive officer Hapenga Kabeta said tax avoidance is a criminal offence, which has led to the country losing colossal amounts of money that could be used for developmental programmes, hence the need to strengthen laws that will combat the vice.
“The country has the potential to generate a lot of resources to finance most of its developmental programmes but it is being frustrated by some firms not meeting their obligations. Government needs to strengthen the tax avoidance legislation to rid the country out of such issues,” he said.
Mr Kabeta said this during the Zambia National Broadcasting Corporation’s Sunday Interview recently.
On the introduction of a planning and budgeting Act, he said the Act is key to compel the Ministry of Finance to only release funds, which are budgeted for.
“There is need to come up with a planning and budgeting Act for the purpose of ensuring that only funds budgeted for in the budget are released to implement projects in the country,” he said.
He, however, urged Government to consider reducing the level of the supplementary budget requested and diversion of funds from original intentions
He said a supplementary budget need not exceed 25 percent.