The Zambia Revenue Authority has unearthed a scam in which some steel manufacturing companies have been misclassifying their steel coil imports by falsifying the countries of origin to avoid paying tax, a practice that has lead to Government losing colossal sums of money in unassessed tax.
According to a statement issued o QFM News by the ZRA Coporate Communications Unit, this follows Governments’ issuance of Statutory Instrument No. 46 of 2015 which put in place safeguard measures for the steel manufacturing sector.
The statement says a number of companies in the sector who import steel coils have resorted to misclassifying their steel coil imports with a view of avoiding to paying appropriate import duties and taxes.
The Zambia Revenue Authority has since penalised 14 Steel Coil Importers for misclassifying products at importation and has further sternly warned the perpetrators of such vices of prosecution.