The Zambia Revenue Authority (ZRA) has reiterated its call on local business entities to bid for tenders to collect tax on behalf of the authority.
However, ZRA Corporate Affairs Manager, Topsy Sikalinda has clarified that the contracted agents will only be involved in registering, monitoring of compliance and enforcement.
Mr. Sikalinda told ZANIS in an interview in Lusaka today, that none of the appointed agents will be required to collect or receive money from clients as they don’t have the mandate to so.
He explained that collection of payments will continue to be done by the authority through its various collecting channels such as ZRA offices, banks and mobile money services.
Mr. Sikalinda expressed concern over the low response from local business entities that bided for the expression of interest to be appointed as tax collecting agents.
He noted that only bidders from Lusaka and the Copperbelt responded while, no one from other parts of the country expressed interest.
He said this is why so far, Sherwood Green properties Ltd has been contracted to collect rental income tax on commercial and domestic properties on behalf of the authority on the Copperbelt and Lusaka Provinces.
Mr. Sikalinda has since called on local business persons to take advantage on the request by ZRA for expression of interest and bid to be appointed as agents to collect tax on behalf of the authority.
So far three, companies namely, Sherwood Green properties Ltd, First Alliance Bank and the Zambia National Marketeers Credit Association (ZANAMACA) out of the nine shortlisted were awarded contracts to collect taxes.
Finance Minister Margret Mwanakatwe recently signed a Statutory Instrument number 48 of 2018 which allows ZRA to appoint private agents to collect different taxes for the authority.
And ZRA Commissioner General, Kingsley Chanda said it is in the interest of the authority and the country to ensure that local business houses are given priority in the awarding of contracts to enable them contribute to the country’s economy.