ActionAid stands by Zambia Sugar report

ActionAid International Zambia Country Director Pamela Chisanga has maintained that the new investigation carried out by her organization which has exposed Zambia Sugar Company’s tax avoidance is a true reflection of the situation on the ground.

Speaking at a public forum in Lusaka this morning, Ms. Chisanga said the report on the avoidance of tax by Zambia Sugar is not a fabrication of facts but exposes a serious anomaly that needs to be addressed.

Ms. Chisanga says the report which is a result of experts going through the records of the multinational company and tracing its activities both locally and internationally provides an example of how the country is losing revenue through tax avoidance by big multinational companies.

She says there is need therefore for government to ensure that investors in the country live up to their obligation of remitting taxes.

Ms. Chisanga says particular attention must also be paid on formulating mechanisms that will seal loopholes for tax avoidance.

Speaking at the same occasion, Center for Trade and Policy Development (CTPD) Executive Director Savior Mwambwa said Zambia has had various reports similar to the one released by ActionAid.

Mr.Mwambwa observed that going forward; Zambians must take up the challenge of ensuring that they pressurize government to formulate strict legislation to seal loopholes in the taxation system.

And an academician from the University of Zambia Dr. Mathias Mpande says tax avoidance is not a responsible way of running any government and that no country can negotiate with the private sector on the basis of taxation.

Dr.Mpande says there is need to stop the siphoning of money drawn from Zambia’s resources.

Meanwhile, Youth Vision Zambia Executive Director Amos Mwale says the blame game should not arise in the Zambia Sugar tax avoidance case.

Mr. Mwale has told Qfm news that there is need to establish how the institutions mandated to collect taxes in the country failed to detect the anomaly.

He says Zambians are yearning for a clear explanation from government and Zambia Sugar Company in order to settle the dust.