Zambia lost US$8.8 billion in illicit flows – PMRC

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cash Dollar
Policy Monitoring and Research Centre (PMRC) has revealed that between 2001 and 2010 the country lost US$ 8.8 billion in illicit capital flows including tax evasion while an estimated US$ 2 billion is lost on a recurrent annual basis due to tax planning activities by multinationals primarily operating in Zambia.

This came to light during a media interaction session with the PMRC staff at their premises in Lusaka this morning.

PMRC Head of Research Agatha Siwale has since called on government to promote high tax morale if citizens are to have more trust and feel fairly treated by government.

Ms. Siwale notes that similarly Zambia’s large informal sector which constitutes of 83.4percent of aggregate employment is largely untaxed.

Ms Siwale says each of these cases is indicative of low tax morale contributing to significant tax revenue losses.

She has also appealed to government to analyze the tax morale of each tax payer or potential category in order to gain deeper insights into Zambia’s tax payment.

And speaking at the same event, PMRC Executive Director Michelle Morel urged the media to keep with their good works in terms of educating and informing the public on the importance of tax.

Ms. Morel says she is aware that though media has challenges in making good stories, many have been impressive in the manner they hold accountable those responsible in dealing with public funds.

She stresses that PMRC has seen great improvement with media on policy stories that has really helped the public learn and understand more.

( Friday 15th August 2014 )