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Zambia still owes mining firms sizable VAT refunds

Source: Xinhua| 2018-12-21 18:48:28|Editor: xuxin
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LUSAKA, Dec. 21 (Xinhua) -- The Zambian government still owes mining firms around 550 to 600 million U.S. dollars in value added tax (VAT) refunds, an industry body said on Thursday.

The situation has not changed on the ground as the country's revenue agency, the Zambia Revenue Authority (ZRA), has not honored its promise to pay back the refunds by next year, Sokwani Chilembo, chief executive officer of the Zambia Chamber of Mines, told reporters.

He hoped that the government would be able to honor its obligations as the money was needed by the mining firms in their operations.

Zambia's rising debt and alleged hidden borrowing have increased concerns, hampering investors and Western donors in recent months.

Last month, the revenue agency said in a statement that it returned over 80 percent of funds owed in VAT refunds to the mining sector between January and October this year.

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