Varun beverages Zambia limited has dragged government to court over the withdrawal of its tax incentives. The Company who are owners of Pepsi drink have sought judicial review of government’s decision.
They are asking the court to grant them leave for judicial review which will also act as a stay of government’s decision. Varun Beverages is asking the court to quash the decision by government to withdraw the five year tax deferment granted to them in respect of payment of vat and excise duty.
The company is also demanding damages and costs resulting from the said decision. In it’s statement of claim filed in the high court Varun Beverages Zambia limited claims that the revoking of its tax incentives was against the rules of natural justice.
The company claims that it was granted an investment license in respect of an investment worth over forty four million United States dollars by the Zambia development agency in 2008. Sometime in 2009 the company applied for tax incentives in form of exemption from vat and excise duty of ten years which was granted by the then minister of finance. Hearing of the application for leave for judicial review has been set for February 29 2012 before Lusaka high court judge Annesie Bobo.
