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Saturday, January 25, 2020

Finance Minister optimistic Zambia Revenue Authority surpass its tax revenue collection target

Economy Finance Minister optimistic Zambia Revenue Authority surpass its tax revenue collection...

inance Minister Dr. Bwalya Ng’andu reaffirms Government’s tenacity to put resources to good use. ,
Finance Minister Dr. Bwalya Ng’andu Receiving the Dividend Cheque

Finance Minister Dr. Bwalya Ng’andu has said that he is optimistic that the Zambia Revenue Authority (ZRA) will next year surpass its tax revenue collection target and he is happy that the Authority this year has done well in terms of meeting its target in terms of revenue collection.

Speaking during a Deloitte Zambia Budget Breakfast meeting on Monday morning, Dr. Ng’andu hoped that the Authority will seal all leakages in the country’s taxation system so as to collect more.

“In the budget, I am trying to raise about K73 billion from taxes and grants. Now, this means that ZRA will have to do some serious running. It’s an ambitious budget,” he said.

Dr. Ng’andu stated that when ZRA closes the leakages in the country’s taxation system, they will be able to collect more money in form of taxes.

The Minister also indicated that Sales Tax will not be introduced anytime soon.

Speaking at the same meeting, Deloitte Zambia Chief Executive Officer Humphrey Mulenga said the ministry’s plan to face Zambia’s external debt challenge head-on, through implementation of austerity measures and refinancing of existing loans, is a positive move.

“Domestic Arrears: Your focus on dismantling domestic arrears is good. This should improve liquidity in the economy and assist, in part, to drive economic growth,” he indicated.

“Public Investment Board: Your constitution of a Public Investment Board that will be responsible for appraising major public investment projects, is an excellent initiative. As you are aware Hon Minister, in the private sector, capital projects are subjected to strict appraisal processes as a matter of course, as part of the decision making process on whether or not to proceed. It would be hard to find a good reason why public sector projects, which often involve much larger sums of money than private sector ones, should not be scrutinized and appraised, beforehand.”

On Sales Tax, Mr. Mulenga said the ministry’s swift call on the Sales Tax versus VAT issue, were in effect stakeholders had a dreadlock, is commendable.

He added that this takes away a significant uncertainty in the business environment and that the private sector and investors abhor uncertainty.

The Deloitte Zambia Chief Executive Officer also said the government’s resolve to accelerate energy reforms to attain cost reflective tariffs and ensure that the country is able to attract investments in alternative sources of energy, is welcome.

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  1. Public investment Board, what is that Hon Minister? In Zambia major public investment projects are decided, announced and directed at the airport and at political rallies, what appraisal are you talking about? The minister will soon find out what his predecessords found out through the newspapers. Good ministers but no power except on paper.
    And we have been told that there is no country in the world that doesn’t borrow as if we dont know, and yet the issue is sustainable borrowing vs Zambua’s reckless borrowing and inflation of project costs.

  2. “The minister also indicated that Sales Tax will not be intriduced any time soon”.

    Why? I thought you would say consultations will continue.I still believe it would be better to have a hybrid( varied) tax regime, with those industries adding value (manufacturing industries) enjoying VAT regime including mines.However those mining industries exporting base metals as opposed to value addition must be subjected to Sales Tax.In this way,Sales Tax will not be a cascade tax and will act as an incentive to exporters of base metals to venture into value addition and migrate for Sales Tax to VAT regime thus providing the much needed forward and backward linkages to our economy.It is the duty for any Tax Authority to devise an appropriate mechanism for optimal tax collection be it VAT,GST or…

  3. We need to work on the deficit of trust and honesty in our nation if we are to move forward. You cannot tax your way to wealth; neither can you penalize your way to wealth. So fees and taxes must be contingent, not the norm. Let’s seal these pots so ba koswe do not have access; let’s give some assurance of quality service and job security to our young people so they do not get panic-stricken to get rich quick… stuff like that you know. That said, good luck to ZRA.

  4. ZRA should be innovative enough to bring the informal sector in tax net.They should devise a mechanism of how they should capture informal sector in the tax web. Otherwise, it is pointless just get PAYE from formal sector which is very slim. Formal sector should not only be a burden in shouldering the whole tax responsibility. I expect ZRA to go flat out and tax the bloated informal sector. They are the ones that enjoy most of the privileges that come with tax investment.

  5. With the current ZRA system I don’t see any tangible results being reaped. Firstly the taxes owed by parastatles are huge and continue to increase I don’t know what the government is doing with this. How can we be borrowing more money from outside thereby accruing more debt when we are failing to effectively and efficiently correct tax money owed to the nation by local organizations. Government agencies must lead other organizations in transparently and timely paying their tax obligations. If the system is failing change it for better results. The informal sector taxes can easily be administered and collected if ZRA devises a plan by coordinating or partnering with the council and devise a strategy that ensures tax collection base is widened. Have an automated system that…

  6. Continued: That those you wish to subcontract to help in correcting debt owed to the nation by taxpayers is collected anywhere in Zambia. Likewise Introduce gadgets or systems like that of ZANACO where anyone can conveniently make a deposit or payment at any agent outlet. Lastly what is the use of having various government establishments when you fail to properly coordinate them to become a system that ensures government functions well.

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