THE Zambia Revenue Authority (ZRA) will partner with private sector organisations by appointing them as agents to collect taxes from the informal sector.
ZRA corporate communications manager Topsy Sikalinda says this is part of the authority’s strategy to broaden the tax base by improving collection systems for taxes such as turn-over, base, presumptive on taxis and minibuses, and withholding tax on rentals.
He said in a statement yesterday that the agents will be key in collecting taxes from all players in the informal sector through smart partnerships with ZRA.
Mr Sikalinda said the decision is in line with the provisions of the Income Tax Act Chapter 323 of the Laws of Zambia.
He said to be considered for selection, ZRA has put in place clear criteria which bidders will be subjected to.
This will include adequate financial and non-financial resources, evidence of effective working collaboration with key stakeholders, a well-organised record-keeping system and good performance.
Mr Sikalinda said successful agents will be required to propose and implement best revenue collection modalities or mechanisms which will guarantee security of government revenues, efficiency and timeliness in tax collection.
“In line with the local empowerment policy of the government, ZRA will give priority to Zambian influenced entities. The bidders are required to submit company registration and valid tax clearance certificates for them to be eligible for consideration.
“The agents, in executing their functions, shall submit all reports on deliverables to the office of the commissioner general under whose direction they will be working. The contracts with agents will initially run for 12 months with a possibility of renewal depending on performance,” Mr Sikalinda said.
Things are getting hot these days…the slogan of lower Taxes and more money in the Pocket of the Late Great Sata is now becoming a thing of the past! Everything we must pay for! Your car must have road tax, insurance, fitness, then you also have to pay for tolls, you have to pay Napsa for your kaboyi, taxes for the income you have been earning for that ka house you built and those flats which you thought were a simple and straight forward investment. I think death is the most economical state of being but even that one requires you to pay for a grave site or the council will resale your grave site to someone else!
Perhaps the Street vendors will prefer to operate in authorized spaces once this is implemented. They are an eyesore!
its a shame that poor citizens are the ones who seem to be paying all the taxes at the expense of large corporations like Mopani who even refuse to pay electricity and politicians.
I think we should seriously look at PF in 2021.
Its so difficult even to pay ZRA these days.too many restrictions
On paper, this looks a brilliant idea. The only concern is the corruption element to the whole setup. ZRA agents who collect duty when clearing goods are a law to themselves. This system will have to be transparent in order to work. Individuals should be given the opportunity to submit their taxes via mobile apps or online self- assessment forms directly to ZRA before these so called private sector bailiff start pouncing on them with their own tax calculations.