MUSOKOTWANE’s Tax Exemption FRAUD Raises QUESTIONS

THE revelations that former Finance and National Planning minister Dr Situmbeko Musokotwane authorised a K10.8 billion tax holiday to Varun Beverages Zambia Limited raises more eyebrows about the manner in which the MMD government was running the economy.
Barely a few days ago, Parliament heard that the fallen MMD government under president Rupiah Banda hurriedly borrowed US$145 million to finance some road works in a failed bid to win votes.
Normally, there is nothing wrong to give tax holidays if the law is applied but according to information in our possession, in this case, there was breach of the law.
The documentation we have shows that Value Added Tax and excise duty are consumer taxes that companies and businesses collect on behalf of the Zambia Revenue Authority (ZRA) and cannot be deferred.
This effectively means that the VAT money which Varun Beverages is collecting as a consumer tax from Zambians and should be remitted to ZRA will not be remitted to benefit Zambians.
We know that VAT is not a cost to the company but consumers meaning Varun Beverages has been collecting money from Zambians meant to go to ZRA but this money is not being remitted.
This money should have been used for construction of schools, clinics and other social services or even roads instead of the previous MMD government opting to hastily borrow US$145 and use it to construct roads just to win votes and leave the Zambian people more indebted.
There is no doubt that most of the roads will not last because the contracts were awarded in haste.
Apart from the blatant disregard of the law, unless other competing companies in the beverages sector such as Californian Beverages, Trade Kings and Zambian Bottlers were also granted the same waivers but since we do not have this information, we think this was defeating fair competition in this sector which is not good for consumers.
We know that a finance minister has discretion to grant tax waivers but this should be within the law and in this case, we do not think that this was within confines of the law.
We are not saying that there was corruption involved, since we do not have such facts, but certain types of discretionary powers need to be reviewed because they can be abused.
Since the former minister is reported to have failed to provide answers to the tribunal established to investigate ZRA activities and only reportedly said he acted under pressure, the public would be interested to know who could have pressured a man holding such a powerful position as former finance minister.
The loss of such huge sums of money is costing Zambians the much needed development finance for various social and economic services.
The Zambian tax payers, who we know are heavily taxed, deserve better answers about how the taxes they pay are failing to get to the treasury for development than just saying “I was under pressure.”

25 Responses to "MUSOKOTWANE’s Tax Exemption FRAUD Raises QUESTIONS"

  1. Nicekeleko   December 21, 2011 at 10:55 am

    No one can put his professional cap down and offer such huge favours to another for nothing, there must have been a bribe or at least find out who “put him under pressure” to make such an unfair decision on us all who faithfully pay Taxes!

  2. jeff   December 21, 2011 at 11:02 am

    I thot these same chaps once they said magande was doing a similar thing to zambian airways now even them are doing the same ya ba vima mbala

  3. Chintelelwe   December 21, 2011 at 11:11 am

    Inadya Situmbeko.Ba pushi…………..

  4. Chintelelwe   December 21, 2011 at 11:11 am

    Anadya Situmbeko.Ba pushi…………..

  5. mwansa hector   December 21, 2011 at 11:17 am

    Its is very heart breaking to see how we local companies are treated for even missing just one tax payment.

  6. NKANDU   December 21, 2011 at 11:48 am

    KA MUDALA KA SITUMBEKO KANSHI U R ALSO FAKE.HOW ZRA ACTS ON SMALL LOCAL COMPANIES WITH SWIFT ALL IN THE NAME OF GVT REVENEW.

  7. shasha   December 21, 2011 at 12:34 pm

    if all that is being revied is true.then i wonder wat could have happnd to zambia if mmd had won,these pipo were jst thinking of themselves,so selfish,so haertless

  8. chilemba wa pawinga   December 21, 2011 at 12:47 pm

    Was it illegal or he did it during the course of duty. Please leave Musokotwane alone this is pure witch hunt UBULOSHI.

  9. LION MAN   December 21, 2011 at 12:47 pm

    Ba sakalanyongo,impupu,amano yabu fufuntungu……….leaving the poor with no hpe but just in God,Zambians without God we are nothing,we are great nation because we choose G.O.D in Jesus name

  10. Haaaa   December 21, 2011 at 1:44 pm

    Iwe chilemba wa pawinga, do you have the heart for Zambia? You must be a beneficiary to all the corrupt practices performed by the Doctor. Please learn to think.

  11. man k   December 21, 2011 at 1:59 pm

    iyi mpaka tulayeba taifwaya kumfwa ati iwe nomunobe Banda muli mpupu nangula ikana.

  12. Grieving   December 21, 2011 at 2:15 pm

    If this is indeed true, then it is a very sad situation for our country and our people. Our country has become like a poor woman from which men are just benefiting without considering her feelings,care,love to mention only two, provided they have benefited. Where is the patriotism here? When you are mandated to oversee the natpional resources, it should not become an opportunity to start abusing the resources for personal ambitions. This is explaining why we zambians have continued to wallop in sheer poverty. Pliz, our leaders, think of the people who ushered you into those offices. Serve them partiotism,meekness and honor.For by so doing,you will bettering the livelihoods of every zambian and uplifting the image of our country, mother Zambia. Thank you!

  13. job jones   December 21, 2011 at 2:47 pm

    his family company supplied blocks for the construction of the pepsi plant

  14. Wapya Baisa   December 21, 2011 at 3:27 pm

    Apprehend the bustard. What the fuck are you waiting for???????????

  15. Kamwendo Munjila   December 21, 2011 at 3:46 pm

    This is really sad.Companies like Zambian Airways went under because these guys did not want to defer their debt to Govt of USD2m.Umuchishya chinani te usuma imwe ba sakalanyongo

  16. Twende babili te mwenso   December 21, 2011 at 3:51 pm

    When SATA says things you all go condemning him that he is not an Economist. SURELY How does learned economist give tax holiday on Vat. if we said about profit tax or investment tax, we would have understood.

  17. Pimp$lim   December 21, 2011 at 5:01 pm

    Zambians , just good at yapping.

    Theres absolutely nothing wrong with waiving taxes to a newly established company that is creating Jobs and contributing towards development of Infatracture for a life time and adding values to the economy,

    Lets not politicise everything.

    If my maths is correct the tax waived is abt ZMK176M per month compounding every month on a for five years. This is nuthn compared to owning owning cars worth ZMK1.8Bn with 60 days.

    What if Barum beverages decides to close down and go back home ?

    Lets learn to set good examples by establishing our own multi national comapnies rather than criticin on baseless facts

  18. mtunda mbuzi   December 21, 2011 at 7:02 pm

    dnt show yo ignorance u 2 fools suporting musokotwane, are u congoles imwe bafikala? go bk in yo mothers womb u dnt dsrv 2 be born in zambia u 2.

  19. DK   December 22, 2011 at 8:09 am

    wait for the results of the investigations !

  20. gk   December 22, 2011 at 11:33 am

    Pimpslim, you are a beautiful fool indeed. We chikopo we. How do you waive VAT and Excise duty? Walipena. The GRZ collects money from businesses by slapping those taxes on top of the prices for consumer goods. So whoever collects VAT and excise duty definately has an obligation to remit the money to the owner GRZ. Now how do you think we chimumbwe we. Get out of here, you bathtub scum.

  21. woundedbuffallo2012   December 22, 2011 at 1:04 pm

    Ba idiot mwasukefye bwino, mwatuminwa ne fibanshi fyankoko pakati, twatasekelamo that’s why yo children are confused with stolen money even able to feature in movies bale ba waza.

  22. Kolwe   December 22, 2011 at 5:16 pm

    There is nothing wrong with what he did .he will come out clean. Good thing about him he know that barotse thing is non starter. Viva zambia .

  23. Phillipino   December 22, 2011 at 8:21 pm

    Another Indian company like Vedanta, taking advantage of Zambians. Nothing good can come from Indian investment.No country in Africa that is full of indians is rich.Muzungus yes but with indians, lebanese NO WAY.

  24. Nononsense   January 31, 2012 at 1:44 am

    I have to disagree with some of the comments and in some futile allegations concerning other companies like Californian beverages.

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