Saturday, June 22, 2024

ZRA to collect company tax through the Banks


ZRAIN AN effort to reduce incidents of tax evasion, the Zambia Revenue Authority (ZRA) is next month expected to begin collecting corporate (company) tax through the banking system.

This means that from November 1, 2016, all companies will now be required to pay corporate tax through their respective banks.
ZRA director of finance Timothy Milambo said tax evasion is a huge challenge and the authority is putting in place measures to reduce the malpractice.

“Having the electronic system in place is one way of reducing these incidents, and going forward we would want to have all taxpayers to be using the electronic [e] channels. This way, businesses will still be attended to since people will make their payments in the comfort of their offices.

“So by November this year, all company taxes will be paid through the banking system. We want to start with large and medium taxpayers, then, roll out to other small tax payers,” he said recently during a meeting on anti-money laundering.

Mr Milambo said there are several benefits that are associated with using e-tax payment platforms.

“There is no queuing up while businesses are on hold as it is happening currently. It will be cheaper and entities will save time because they will not have to stop their businesses to pay tax,” he said.

ZRA recorded an overall collection of about 65 percent of transactions for customs and 45 percent of transactions for domestic since the introduction of the e-payment in 2014.

“Since the introduction of e-payment, we have had a very positive feedback particularly from large taxpayers’ category that have been utilising the services, they have explained to us that the system is quite efficient,” Mr Milambo said.


    • ZRA, your system should not be biased towards a certain group. All must pay tax and ALL defaulters must receive the same treatment. Open The Post now!!

    • Many companies owned PF associates are not paying tax at all and yet they privatise huge money they syphone from government as shown by auditors report.

      The post should be oppened at once pls. Zambian watch should also be opened pls.
      Lungu should stop muzzling the free press.

  1. As usual all talk but when it comes to implementation the Pf are like a p!nis with erectile dysfunction

  2. Reach out to traders in CHACHACHA, LUMUMBA, FREEDOM WAY and KAMWALA and can assure you shall collect billions. Question is, why are we not prosecuting those who evade tax by not receipting/ invoicing sales? Is it that you do not have laws to back you? If not then who is not doing his part and being paid for it?

  3. Ecommerce and development of services is the way to also increase the Tax revenues.Good move mulamu bashimilambo but step up and increase compliancy ,checks,assurance and audits to curtail what can also come as a result UNDERCLARATIONS AND FRAUD of primary tax documents and Financials

    The clearing and settlement must also be as per ZRA calendar More efforts should also be spend on the Informal as the Formal can now manage using the ZRA website and the banking

    Good initiative it help reduce the float factor and increase the cash flows

  4. Please take time to understand the tax system before posting ignorant comments. understand who is liable for what tax and at what rate.

  5. How does a shop owner in Shangombo do his e-returns, how does a charcoal burner who makes thousands from his charcoal sales go online in the bush? People in the far corners of Muchinga. Luapula, Northern. Western and everywhere else many don’t have a clue on how to use a computer let alone the complicated E system of ZRA? Ba Mutati you should allow small and medium entreprises the option of filling tax returns manually- why penalise someone that cannot manage to do via the internet?

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