The Zambia Revenue Authority (ZRA) Commissioner General has directed that all procurements in ZRA should be preferred and reserved for Zambian Citizens and local bidders.
In a memo dated 14th December, 2016 addressed to the Director of Administration, Mr Kingsley Chanda stated that Zambian registered companies should be given business to supply goods, works and services to ZRA as long as they are fully tax compliant and capable of fulfilling the contract.
Mr Chanda said Zambian companies will be given first priority to deal with ZRA but should be registered with the Authority and paying all taxes.
He said the directive is in line with Section 26 (3), (4) and (6) of the Public Procurement Act No. 12 of 2008 for goods, works and services while Section 28 (3), (4) and (6) provide for consulting services.
The Commissioner General said goods, works and services may be subject to a reservation scheme, consistent with the governments’ economic and social policy in line with regulations 160 Statutory Instrument No. 63 of 2011.
He added that where local capacity is not available, foreign companies with local partners will be considered.
Mr Chanda said the directive also applies to Customs Clearing Agents because agents who are not fully tax compliant risk being deregistered next year.
He said Clearing agents also need to be registered for all taxes instead of just being taxes on behalf of importers.