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The Economic and Financial Crimes Court (EFCC) has ordered former Tourism Minister Ronald Chitotela to pay Value Added Tax (VAT) on a K6.5 million construction bill owed to Azadi Investments Limited, the company contracted to build his residential house.
The court ruled that the construction agreement explicitly included a VAT provision, dismissing Chitotela’s argument against the tax payment for lacking merit.
In its judgment dated January 9, 2023, the court stated that Chitotela was legally obligated to settle the tax amount, as the contract stipulated VAT was to be paid in addition to the construction cost.
The court also clarified that no consent judgment had been recorded between Azadi Investments and Chitotela, and efforts to resolve the matter through settlement had failed.
The construction agreement had a total contract sum of K9.65 million, inclusive of VAT.
However, the court heard that Chitotela had only paid K3.15 million, leaving the VAT portion unpaid despite multiple demand notices issued on December 1, 2021, and May 3, 2022.
Chitotela is currently serving a prison sentence for arson.
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