How did Zambia Sugar evaded tax? Private Sector asks ZRA

the Zambia sugar plant

The Zambia sugar plant

The Private Sector Development Association (PSDA) has challenged the Zambia Revenue Authority (ZRA) to explain to the Zambian people how Zambia Sugar evaded tax from 2007 to 2012 without the authority noticing.

PSDA chairperson Yusuf Dodia told the Zambian Eye in an interview that the report raveled ZRA’s incapacity to detect tax evasion and largely collecting the much needed revenue needed by Government to run its affairs.

“It is very strange that in a whole period between 2007 and 2012 this huge multinational company only paid less than 0.5% of its $123m to ZRA and what it even stranger is that the whole thing passed unnoticed to ZRA,” Dodia said.

He has since urged ZRA to issue a comprehensive statement on the matter so that people can understand how the whole thing happened.

Dodia wondered just how many multinational companies could be in the same situation as Zambia Sugar.

He said a lot could have been achieved with the amount of tax that was evaded saying it could have been used to put more than 48 000  children in school.

A new report by Action Aid titled ‘Sweet nothings raveled that Zambia Sugar PLC, owner of White Spoon Sugar and other house hold brands evaded tax by paying only less than 0.5% of its KR 559m pre-tax profits in corporation tax between 2007 and 2012.