In a significant operation, the Zambia Revenue Authority (ZRA) has disrupted a large-scale ethanol smuggling enterprise at Bruhati Industries Limited in Ndola, uncovering tax evasion exceeding K6 million.
Following meticulous surveillance and interception efforts, ZRA officials revealed that Bruhati Industries Limited, situated in Ndola’s Industrial area, had been evading taxes through the illicit smuggling of ethanol.
As a result of the operation, ZRA has sealed the premises of Bruhati Industries Limited and launched a comprehensive investigation to hold all involved parties accountable, with the aim of deterring such illicit activities in the future.
According to Oliver Nzala, the Corporate Communications Manager of ZRA, the investigation commenced with the surveillance and interception of a truck operated by Zampak Energy Company Limited. This intervention prevented a revenue loss of K1,031,039 million from the transportation of 38,000 liters of illicit ethanol.
Nzala highlighted the magnitude of the disruption, stating, “In a major enforcement action, the Zambia Revenue Authority (ZRA) successfully disrupted an extensive ethanol smuggling operation at Bruhati Industries Limited in Ndola’s Heavy Industrial Area, averting a significant revenue loss to the national treasury.”
Further inspection of the premises led ZRA officials to uncover equipment recently used for unloading and processing smuggled ethanol, along with various documents and electronic devices exposing a complex network potentially involving multiple companies in smuggling activities.
Nzala revealed the staggering scale of tax evasion, stating, “Further investigations this year have shown that Bruhati Industries Limited received multiple deliveries totaling between 35,000 to 40,000 liters per shipment, much of it unreported. The cumulative findings indicate a staggering scale of tax evasion. Detailed computations from these activities reveal that Bruhati evaded taxes including excise duty and Value Added Tax (VAT) amounting to K6,453,327.20.”
He emphasized that the operation underscores ZRA’s steadfast commitment to upholding Zambia’s economic regulations and combating financial crimes, reaffirming the authority’s dedication to preserving the integrity of the country’s financial system.
