The Zambia Institute of Chartered Accountants (ZICA) has called for the implementation of immediate interceptive measures to bring to end cases of tax evasion by large multinational companies.
ZICA Chief Executive Officer Hapenga Kabeta said Zambia’s tax legislation has proven to have loopholes and weaknesses hence the need to immediately strengthen it to avoid further loss of potential revenue through tax evasion schemes by business houses.
In a speech read for him by ZICA manager for Northern region, Jessica Chisompola, during a tax updates workshop for ZICA members in Kitwe today, Mr. Kabeta said various international auditors, business consultants and media houses have highlighted various cases of tax evasion by some multi-national companies especially in manufacturing and mining.
He urged ZICA members to advise government on ways of strengthening the tax laws and coming up with a tax legislation that will help in raising the much needed revenue to meet the increasing needs of the citizenry.
Meanwhile, Mr. Kabeta has observed that over the past five years, the country’s national budget has been increasing from about K13 trillion to about K32 trillion for the 2013 budget.
He however said this increase has not translated into improved quality of life for the citizens.
He said the poverty levels have remained high in Zambia despite the large increase in annual national budgets.
Mr. Kabeta also observed that poverty levels have remained high, which is contradicting the rich perception which the international community have about Zambia.
He noted that the current national budgeting process was not sufficient to respond to the challenges of the present day Zambia although the process has been used since independence.
He called for an expeditious enactment of the Planning and Budgeting Act which will spell out how the budgeting process will be carried out including the involvement of key stakeholders in the budgeting process and the inherent accountability issues.