ZRA Nabs 66,000 Litres of Smuggled Ethanol in K3M Tax Scam
The Zambia Revenue Authority (ZRA) has intercepted two trucks carrying 66,000 litres of smuggled ethanol, resulting in an estimated revenue loss of K3 million to the government.
The trucks entered the country through the Nakonde One Stop Border Post and were declared as transporting 132 packages of calcium hypochlorite each – a product exempt from customs duty but subject to 16% Import Value Added Tax (VAT).
However, ZRA officers discovered upon inspection that the trucks were in fact laden with 96% ethanol in 250-litre plastic drums. The drums were labelled “Extra Neutral Alcohol 96%” with stickers bearing the UN1170 code, confirming the substance as ethanol.
Further checks on documentation revealed Zambia Breweries PLC as the importer and Transtra International (Z) Ltd as the clearing agent. Alcohol permits and delivery notes confirmed the product as ethyl alcohol, with Zambia Breweries listed as the buyer.
The ZRA stated that the misclassification constitutes smuggling, breaching Sections 141, 149, and 159 of the Customs and Excise Act CAP 322. Investigations are under way, with possible prosecutions for those involved. Transtra International’s Taxpayer Identification Number has already been suspended, with its operating licence under review.
The Authority also announced it will conduct a full audit of the 21 declarations processed between 2023 and 2025 by Zambia Breweries and Transtra International to determine if further revenue losses have occurred.
The two vehicles were intercepted along the Great North Road between 3 and 6 August 2025.
ZRA Corporate Communications Manager, Oliver Nzala, urged taxpayers to comply with the law to avoid punitive measures such as prosecution. “Smuggling undermines development. If we have good roads, hospitals and schools, it is because of taxes. Smugglers are like people cutting the very branch they sit on,” he said.
He added that legitimate traders deserve protection from unfair competition. “It is possible to make profits legally. Many businesses operate honestly and succeed after paying taxes. We encourage traders to avoid smuggling and to report those who engage in it so that all can compete on a level playing field.”
