ZRA misses revenue collection target by 11%

The Zambia Revenue Authority – ZRA has missed its April 2024 tax collection target by a notable 11%, perhaps depicting the tough economic conditions existing in the Zambian economy. ZRA collected a total of K12 billion (abut US$460 million) against a set target of K13.6 billion for the month of April 2024, with this shortfall putting further pressure on the treasury.

According to published April 2024 performance results seen by the Zambian Business Times – ZBT, the governments revenue collection authority had failed to meet its target due to hefty tax refunds of K1.3 billion paid out mostly to mining firms. The authority further under performed under company tax collections by 36%, collecting K3.5 billion, against a target of K5.5 billion.

ZRA collected K1 billion for the month of April 2024 under mining company tax, which was 64% below target of about K3 billion. Most areas under inland revenue underperformed as tax paying companies, businesses and individuals struggled to cope with rising inflation, raising cost of doing business as well as a depreciating local currency – Kwacha.

However, the face saver was the performance under customs division which posted a 17% performance above the set collections target. The ZRA customs division exceeded the minerals concentrates export duty target of K3.7 million by about 60%. Other areas of better performance were fuel import levy which delivered revenues of K138 million which was about 40% above target.

Diversification of the Zambian economy remains a strategic goal as revenue generation as well as tax and non tax revenues have tended to rely heavily on the copper mining industry and its cottage industry. Other key economic sectors like agriculture remain marginal as their contribution to tax and non tax revenue as not grown enough to offer an alternative and counter cyclical economic engine.

The Zambia Revenue Authority - ZRA has

Northern Province records lowest inflation – attributes it to fish farming & good rains

Northern Province Deputy Permanent Secretary Beauty Phiri has attributed the decrease in inflation in the province to good rains the province received and the growth of the fish farming sector.

The Zamstats May Bulletin revealed that Northern province had the lowest regional inflation rates, dropping from 9.2 percent to 9.1 percent with the highest being Western Province despite inflation decreasing from 22.5 to 20.1 percent.  

Phiri explained that the surplus from fish farming contributed to the province’s economic stability despite the agricultural sector being affected by a drought.

She emphasized the government’s commitment to developing the tourism sector through the Northern Circuit project and outlined a comprehensive development plan aimed at revitalizing the province’s economy by 2026.

Speaking in an exclusive interview with the Zambian Business Times (ZBT), Phiri said the province enjoyed a considerable amount of rainfall and the yield has been massive at the same time the farmers have been trading lots of fish within and across the border of Tanzania.

“The reason why we have a lower inflation and lower decrease in the same is that this province is endowed with fish farming, they have closed Lake Tanganyika, but the farmers had stored some fish which they are selling and the fish that they are selling to Tanzania and other places is giving them money because this is when they have just closed Tanganyika, and it cannot be a huge decrease because this is when the market has opened and the decrease cannot be more than two percent or three because this is when it had just happened, money is exchanging hands and the economy is picking because there is money in circulation, and the people are able to buy one or two things that are why we have those statistics but we might see an increase by July or August by then their maize would have dried up properly,” She said.

“We are working at revamping and utilizing several sectors such as tourism because the market for fish and maize is mostly targeted towards Nakonde, specifically Tanzania but if we can do a lot of advertising to ensure that we display the resources that the Northern Circuit has believe me that we will not be talking in Kwacha we will be talking in dollars because some of the best fish in the Country is found in lake Tanganyika and we might utilize that to export and contribute to foreign exchange at the end of the day we will not be dependent on copper,” She said.

Northern Province Deputy Permanent Secretary Beauty Phiri