The Kitwe and District Chamber of Commerce and Industry is urging government to enact legislation that penalizes entities that fail to honor payments for goods and services supplied to them within the agreed or stipulated period of time.
Mopani Copper Mines and Konkola Copper Mines are reportedly owing local contractors over $200 million with the latter pledging to liquidate up to $250 million liabilities to local entities after Vedanta resources officially repossessed the mine on Tuesday.
However, Chamber President Emmanuel Mbambiko says failure by any business entity to pay local suppliers and contractors for goods and services consumed over a prolonged period, must be curbed through legislation that imposes penalties.
And Mr. Mbambiko has disclosed that most Small and Medium Enterprises -SMEs in Kitwe are collapsing and closing due to the failure by the Zambia Revenue Authority -ZRA to pay the huge amounts of money owed in withholding tax refunds.
He tells Phoenix News that ZRA is suffocating SMES and has challenged the authority to begin paying out its tax refunds and withholding tax obligations to ensure the survival of businesses.
PHOENIX NEWS