Consumers Unity and Trust Society (CUTS) International Zambia has recommended that the Zambia Revenue Authority (ZRA) defers the enforcement of the withholding tax LAW on rental income due to the high cost of living in Zambia.
CUTS International Zambia Center Coordinator, Simon Ng’ona explained to QFM News that though the law has been there for some time now, it is prudent that government through ZRA suspends its implementation.
Mr. Ng’ona said his organization has received a number of concerns from people over the income tax on rentals and that government should look at this law again.Mr. Ng’ona argued that the move will force Landlords to hike rentals which are already high in most parts of the country.
He has since appealed to the Zambia Revenue Authority to work out measures that will see to it that this law does not make things worse considering that the cost of living in Zambia is already high.
Recently the PF Government called on all citizens renting out property to be paying 10 per cent withholding tax to the Zambia Revenue Authority because it is law.Information and Broadcasting Services Minister Chishimba Kambwili made the call during a live interview on Radio Luapula in Nchelenge District.The Minister said that failure to pay the tax is breaking the law and if there are concerns on the amount of the percentage, Government is ready to dialogue on the percentage of the tax but paying withholding tax is law and every citizen should comply.
Mr. Kambwili said the law was passed between 1992 and 1994 by the MMD Government at the time but were timid to implement the law because of politics of appeasement.
He said withholding tax is not a new law except that the MMD feared to lose votes from the people if they implemented the law but law is law and every citizen should comply.
Mr. Kambwili said the PF Government is just implementing the law that has been on the law books for many years and every citizen who owns property and rents it out should pay the 10 per cent withholding tax to enable Government in raising the required funds for financing developmental projects.