Industrialist Andrew Sardanis says refusing to pay $650 million Value Added Tax refund will dent Zambia’s international reputation.
Sardanis said the decision by government would hurt the country’s reputation and that investors would be apprehensive before settling for Zambia as an investment destination.
Sardanis said there was no need to breach legal obligations by the government as it was against good corporate practice.
There has been a tug of war between government and the mines over the VAT refund with the mining firms saying the move will lead to massive job losses and reduced investment in the sector.
“Because if we refuse to pay a legal obligation we will lose our international reputation which is something that Argentina does every five or ten years but Argentina has a huge economy with 41 million inhabitants and the per capita person is 2000 dollars per person that is why they can afford to do anything they like but we are a small fry,” he said.
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