Green Party President Peter Sinkamba has written to the Minister of Finance Margret Mwanakatwe demanding immediate issue of a waiver to formally exempt individuals who own residential properties from paying withholding tax on rental income. He said that the waiver should hold until an equitable system is put in place to ensure poor and unemployed landlords are unduly exploited by Government.
Mr. Sinkamba disclosed this in Kitwe this morning following the lapse of the deadline set by Zambia Revenue Authority (ZRA) Commissioner General Kingsley Chanda requiring all landlords and tenants to register for withholding tax by 1st March. He said it is improper for government to issue ultimatums before amicably resolving the Pay As You Earn (PAYE) issues.
“For example, the Income Tax Act provides for a system of taxing emoluments. The word ‘emoluments’ is quite extravagant. According to Section 2 of the Income Tax Act, it includes wages, salaries, overtime, leave pay, commissions, fees, bonuses, gratuities and any other payments from employment or office. For some unemployed or retired township dwellers, renting of servants’ quarters or part or whole house is their office. Some are orphans, others are widows whose only source of income are those quarters or parts of houses or indeed whole houses. So, to them, the houses is their employment and their office. How then do you go ahead to give deadlines without resolving these pertinent issues?” said Mr. Sinkamba.
Mr. Sinkamba explained that according to Section 45 of the Income Tax Act, an income of K3, 300 gross per month is not reportable income. He said that such an income is tax free and added that beneficiaries are obliged by law to report that income to ZRA. He said the tax free provision does not only apply to those who earn income through formal employment but even those who earn their income through informal means. He said the rebate should also extend to landlords who charge rental which is equivalent or below the taxable threshold.
“The Income Tax Act provides a tax rebate for persons who earn gross revenue of K3,300.00 per month. Most, if not all landlords in Chimwemwe, Wusakili, Kanyama, Mandevu and elsewhere in the countrywide do not earn that kind of money from rent charges. Almost 98% of households countrywide are not worth that kind of money in rental charges per month. So, why bother God’s people to register, and give them deadlines, when you know for fact that they are statutorily exempt from reporting their earnings to ZRA? It is like ukukumbwa nefyo tabalya,” he quipped.
“Zambia is a constitutional democracy. It must be governed according to the National Value and Principles which the President talked about last week on Friday. Some of the values and principles include human dignity, equity, social justice, equality and nondiscrimination, good governance and integrity. The threats by ZRA are nowhere closer to these values and principles. ZRA has unduly sent serious shivers in our people in compounds. What makes matters worse is that the vast majority of our people are extremely vulnerable because they cannot afford legal representation if ZRA were to pounce on them.
“You see, Government is a making of the people. Leaders are elected into government by the people, to serve the people, and not to exploit, intimidate or bother them for nothing. Therefore, when leaders are privileged, by the people, to serve in government, then the leaders in return have an onerous responsibility to act responsibly towards people’s interests and complaints. Sadly, and shockingly so, our colleagues in the PF Government have drifted away from National Values and Principle enshrined in the Constitution,” the Green Party leaders grieved.
“This issue of withholding tax requires a sober approach by our colleagues in Government not threatening the people. Those in Government must always remember that according to our constitution, ultimately sovereign authority is vested in the people. They must always remember that the power has just been temporarily lent to them on borrowed time for that matter. It is therefore improper and an exhibition of serious irresponsibility to threaten the people simply because they are poor, illiterate, and hopeless.
“The deadline set by ZRA lapsed two week ago. Our people do not know what will follow next. The threats and ultimatums by ZRA have really sent serious shivers in our people, especially those in compounds. These people are extremely vulnerable because they cannot afford legal representation if ZRA pounces on them. So to avoid their misery, just in case ZRA decides to be brutal, as the Green Party, we have decided to write the Minister of Finance to immediately place a waiver on rent income withholding tax until an equitable system is put in place to ensure that poor and unemployed landlords are unduly exploited by Government. We hope she takes this request seriously and with the urgency it deserves”
As always, Sinkamba on target again. This is a great move by the Greens. Why should orphans, widows and the unemployed be deprived of their source of livelihood? They have been chased from the streets, market stall are inadequate, and now their only stable income taken away by the State? If is the fulfillment of the scriptures that those are rich more shall be given to them, and as for the poor, even the little they have will be take away? Knowing Sinkamba, he will go to court to challenge the constitutionality of measure……Go Sinkamba, Go! Tiye nabo!
Let sponsor Peter Sinkamba for the Chilanga seat we need such brains in National Assembly!!
If you listhened to “let the people talk” two weeks ago, HH raised that issue as well
And this is what will bring down ecl and the pf government down come 2021. Now, there is a bore hole tax? We shall see who is the master here? The pf govt Vs the people of Zambia? And will not allow any defections by those in government today who are in the for front agitating for these unpopular taxes today into any party that will form government come 2021.
By the way, where are the other the opposition leaders on this matter? These are the things they should be talking about during their campaigns!
Yes, yes great leader Sinkamba go to the court to fight for the common man. Whilst ba HH and many others are quite on the matter. Where is also madam Nawakwi? She is been quite, why?
Taxes in Zambia:PAYE,VAT,EXCISE DUTY,CUSTOMS DUTY,ZNBC LEVY FEE,PARKING FEES,WATER UTILITY FEE,TOLL FEE,and BOREHORE tax to be introduced.A Zambian does not enjoy the money that he or she sweats for.The only people who are living a better life are politicians whose money is not subjected to tax.Tax administration regime needs to be looked into and dispense with certain taxes that are subjecting people to poverty.It is a shame that a government that came on a platform of pro-poor is now behaving contrary to their promise.
This needs and must be corrected. Politicians emoluments must be taxed and taxed mercilessly!! Exploiters.
And soon sex tax will be introduce where even married couples will be compelled to pay every month.
This is why I gave on PF and joined Green Party!
My President Peter Sinkamba well said Sir!
Why does the govt want to appease the IMF? Its the IMF who are hounding the govt to tax the populace. These are ngwees that the govt will get in comparison to them following up on the big fish such as mines, millers and other big companies operating in the country!
If only we could see Sinkamba merge practical ideas on developing Zambia with Brg Miyanda I believe we would be headed for greatness as a nation.
2021 Vote Green Party, Vote Peter Sinkamba a leader who cares for all Zambians!
Commrade you’ve abandoned us but kudos to you since the Greens are more sophisticated and relevant than Kaponya (HH) and his domestic cattle UPND
Just the fact that a once all weather lungu and PF supporter 2020vision has ditched them is indeed a sad indictment of the leadership of lungu.
Infact 2020vision was one of the more objective and on point supporters. Slowly PF are being left with empty tins and cholera stricken supporters like kudos and njimbu . The other empty tin Mr Terrible had cholera and is now confined to chinama hospital after constant sontaporing at pit latrines……
Dear Changwa, Tax on Rental Properties means for investments for me for right in Zambia.
that the spirit sinkamba we are supporting you on this one,shameless kawalala party.
PF are too lazy too reckless to employ such conditions …they are like those fishermen who use mosquito nets and toxic poisons to catch fish. Simply look at their Toll Gates…they simply block a road and start charging a fee to everyone including residents. ..a toll road is supposed an alternative route to point C from point A.
These people are only interested in overtaxing yet are not accountable on govt spending…Amos lamentably failed to prove that the bank statement was doctored instead they are hoping the matter will simply disappear like a fart.
I fully buy into you arguments, it makes no justification to draw more blood from the already anemic citizenry. Think a little more hard on best ways to fill the national development coffers.
I don’t see government budging on this one. There’s less and less money for govt to even meet the public service payroll every month because of interest payments on eurobonds which many on this site celebrated when they were contracted. Treasury secretary Fredson Yamba castigated those who dared to express concern with the rate at which loans were being contracted and told you about a sinking fund to enable Zambia to pay on maturity. How someone in a deficit could have a sinking fund no one asked him. Where are we now? Live with it you, Zambians. You brought it on yourselves, you made the bed and surely you had better lie in it.
Mr. President careful with your Ministers the way there treating people by 2021 you will remain alone in PF.
And we will not allow these same minister to cross over to the opposition party forming government bcos come 2021, kuya beebele, ba pf!
Legalize dagga and do not pay tax. What rubbish!
Let us learn to pay for our Government Services to make them sustainable and good standard.
Good roads, good hospitals, free education etc, etc has to be paid by the beneficially.
UK, Japan, German, South Africans, USA, Chinese pay their Taxes for that development and advancement.
ZRA get busy, our Country is bleeding and needs to progress.
Ignore and punish lazy dagga smokers!!!!
You forgot to mention those countries in your list are major exporters of finished goods , tax monies collected are ploughed back into industry, not being used to pay lungus $1.7 million 3 day bill in new york….atase.
Sorry mate but this law was deliberately waived by previous governments for the same reasons Nkamba has put forward.
These are empty tins just good at character assassination and contributing zero…I would rather have a marijuana smoker than a demented dullard cadre trained from Sunday Chanda’s blogging workshops.
We told , and we tell you again and again, PF is hard coded to work only with borrowed money…..they only know how to spend. It’s borrow and spend.
All ministers only know how to spend borrowed money with lungu. Creating wealth for the nation if alien. Something that can not be done. They have gone through 17 billion of borrowed funds yet unemployment and exports of goods are still at a realtime low.
No more borrowing , only tax and taxing is how to raise funds…..dunnuna….
Nkamba has put the point on behalf of the people of Zambia not for a political party. This though has been law, it’s just humane that people are spared from it. Please Sinkamba keep the fire burning.
I partially agree with Mr Sinkamba in that this tax will not be fair on a large number of people who own houses ,but I don’t support the idea that it should not be implemented,e.g workers who earn as little as k3500 is paying tax and yet a landlord who earns more than k10,000 is not paying an tax ,how fair is this.
There are people who have constructed a 100 or houses earning a lot of money and yet these people are not paying any thing to govt, yes I agree that govt should first ascertain who and what categories should pay this tax and not to scrap it,this is not about widows and orphans because even nurses and teachers some of them are widows and yet they are paying taxes, how fair is that.
If GRZ was collecting this tax to implement massive housing construction for low income citizens , to drain the kombonis, and address the housing shortage then yes, by all means , but we all know these taxes are only for PF consumption…
Mweba mabange abena Peter, you bring very salient issues. But you cannot do it on no man’s land as your only party. Join one of the two to get your message heard brother than living in a cacoon.
I kinda trust Sinkamba, very easy to understand him and his agenda.
But I don’t trust h.h as an.optional leader of Zambia neither can I follow what h.h is talking about when.he opens his mouth. Very difficult person to understand but maybe its because h.h himself does not understand what he wants anyway.l, too many contradictiobs, opposefirthe sake of opposing and end up saying ru.bbish.
well said Peter…
this govt is NOT PRO POOR
“The Income Tax Act provides a tax rebate for persons who earn gross revenue of K3,300.00 per month. Most, if not all landlords in Chimwemwe, Wusakili, Kanyama, Mandevu and elsewhere in the countrywide do not earn that kind of money from rent charges. Almost 98% of households countrywide are not worth that kind of money in rental charges per month. So, why bother God’s people to register, and give them deadlines, when you know for fact that they are statutorily exempt from reporting their earnings to ZRA? It is like ukukumbwa nefyo tabalya,” he quipped.
I am ready to pay road tolls because I am using the road which needs maintenance. But to pay for the property that I have to maintain myself is absurd.
Sinkamba is making a lot of sense on this one. Thumbs up!
if you guys listened to hh talk about various issues. he even put real #s on the taxes Zambians are paying and how little is left as disposable income at the end of the day.
both sinkamba and hh are saying the same thing, I wonder if pf care to listen or give a rat’s a ss.
where’s mumba, nevers (whatever his name is) and mmd ?
how come nobody in the pf ever opposes anything. it doesn’t mean just because you’re in the ruling party you can’t speak your mind. see how many republicans are warning trump right now about Mueller? in Zambia they just sit there nefimalufumo, never contribute anything to the country. what a shame. and it’s you guys’ fault cuz you voted for them after getting little vitenge and money. you need to wake up and realize that you vote, make these fools rich…
The of getting a TPIN ,as an agent my self it does not mean that you are going to pay tax no ,it depends on the threshold, e.g the threshold on income tax is k3300 per month and your income is k3000 per month it means you are not eligible to pay any on your income but you should make a declaration to ZRA that you earned that income every month and ZRA will not get anything from you,I hope ZRA clarify this issue to the masses.
So refreshing to have the opposition taking on government on substantive issues. Anywhere in the world tax compliance can be a burden for the “small man and woman” and can lead to unintentional errors and omissions leading to unnecessary and burdensome penalties and prosecution. As WHT is not a final tax in itself but more like a “payment on account” for your final year end tax bill ,there ought to be a de minimis for those earning below the the K3,300 p.c.m threshold as they wont have any tax to pay in any case and most will have no means to claim the tax back without having to pay a professional for help which is all a waste of time.
So I fully support this call by the Green party….