The Zambia Revenue Authority (ZRA) has a recent audit indicates mining companies owe the government more than the state is due to pay them in tax refunds.
Mining companies have been demanding Zambia pay the $550-$600 million due to them in Value Added Tax (VAT) refunds.
But according to ZRA commissioner general Kingsley Chanda, it would be counterproductive to release the funds to the mining companies as they owed more to the state.
“When we put together what we owe the mining companies compared with what they are owing, you find that on the balance of numbers they are actually owing more,” Chanda said at a media briefing.
Chanda did not say how much mining companies owed the state but said it included penalties and interest. Mining companies pay government royalties and tax.
