Finance Minister Bwalya Ng’andu has called on Zambians to be vigilant in curbing the country’s low tax compliancy levels to promote fiscal fitness.
Dr. Ng’andu said at the Livingstone Chamber of Commerce and Industry organized post-budget discussion last evening that tax compliance should be every citizen’s concern and responsibility.
He said a lot of people who ought to pay tax are not doing so and many others are paying less than they should.
Dr. Ng’andu noted that even as the government is working to close-up gaps in revenue collection, the situation calls for every citizen’s vigilance because tax evasion has a ripple effect on the economy.
And Dr. Ng’andu said his ministry is also working to resolve the wastage and abuse of financial resources in the public sector.
He observed that management of the public service wage bill, for instance, is being looked at with the intention of riding it off ghost workers and enhance the procurement function to include out-comes as opposed to the process alone.
Dr. Ng’andu said the various measures being undertaken by Government are meant to improve revenue collection in the country and stimulate the economy.
Meanwhile, the Minister also observed the need to diversify to other sources of energy to mitigate the current electricity deficit the country is facing due to climate change.
He also noted the need for the country to promote and open up more tourist destinations.
Dr. Ng’andu said the low water levels experienced this year at the country’s number one tourism product, the Victoria Falls should be a reminder to explore and promote new sites.
And speaking at the same event, Livingstone Chamber of Commerce and Industry President Namakau Sianga said the chamber is confident that the Ministry of Finance will continue to adopt robust economic policies anchored on stakeholder active and inclusive participation.
Ms. Sianga reaffirmed her chamber’s commitment to working with the government to foster development.
She also pledged the private sector’s commitment to compliance in support of measures to be effected to kindle the economy.
Dr Ngandu the problem is you are not a Politician but a technocrat and you seem to forget that we have elections in two years time. Zambian tax compliant entrepreneurs are already heavily overburdened not only with tax but with Napsa, Council levies, Workman’s compensation and various Industry specific certification payments. Let’s not forget rental and borehole tax. If the issue is to get to those who are not paying tax best you just create a baseline tax (similar to VAT but only payable to unregistered retailers who don’t have TPINs) on Wholesale items. Whereby those unregistered (SIDO) shop owners who buy their stock from established registered tax paying Wholesale outlets will pay an extra amount on the purchase of Wholesale items to cover the uncollected tax instead of chasing…
Theft of government money also encourages tax-dodging as hard-working people are appalled whn they see their tax contributions lost through wasteful expenditure and downright theft in government. They always ask themselves why those in govt should spend it that way instead of they themselves who earned it in the first place. Anyone who doubts this had better talk to a tax accountant in confidence.
Thank you 2020vision! For a very long time now, I longed for such words be jotted. I now know they are people like you in our country. In the first place, this overloaded government payments on SMEs and entrepreneurs is such an impediment to our economic growth on huge level; as small as SMEs can be, which eventually with favourable business conditions become big business, they have a huge role in the growth of any economy. But innovation and entrepreneurial spirit is always toned down in Zambia. Government’s support towards SMEs is merely a fashion statement. Having such minds (Finance Minister) in the key leadership position is what has hugely conjured a cast of nothing but unproductivity in our country. Our leaders fly to developed countries all the time, but more than learning they…
Ctn… Instead of chasing after shop owners who are below the Radar and wasting govt resources buying field operation vehicles, paying for fuel and overtime for Tax collectors. Let apply logic and practicality to some of these problems and not dream of people waking up to go and pay tax because that won’t happen and for you to then think of punishments and penalties is also retrogressive because you will be discouraging entrepreneurship plus decampaigning yourself for 2021!
Mr Minister, just as the government is in need of the funds to pay back loans, the citizens too are in need of funds to put food on the table.
The difference between our funds and your funds is, we know what to do with ours, and we will use them likewise.
You know what to do with the money we give you in form of taxes, but our hard earned money seems to vaporise before the end point… bloating politicians and their foreign peers along the way.
Continuation…come back as empty buckets.
There is no money left in this economy to tax – liquidity continues to be tight!
Has the minister factored in the effect of Load shedding on businesses? The recent upward adjustments in fuel has further complicated an already complex problem! What GRZ needs is to work on their expenditure side of things and bring in structural reforms like abolishing some positions like DCs and doing away with some ministries! Otherwise the Zambian taxpayer is trying under very trying circumstances!
@muzarewa well said, myself and some colleagues did an estimation of the extra cost to govt due to salaries, allowances and vehicle (SUV) purchases, vehicle maintenance for the estimated 5000 SPENT ONLY ON SENIOR GOVT OFFICERS that includes Ministers, PSs, Directors of various govt depts, Institutions and companies (NAPSA, ZRA, PACRA, ZICTA, RATSA, ECZ, National Health Council, National Roads, ZDA, FRA, IDC etc etc etc), MPs both ruling and opposition party, foreign service staff, Security and Defence Commanding officers and the list goes on and on.. we are spending no less than USD 200 million a year on these costs, why shouldn’t this be the focus as well as more strict measures on the Mines and big firms such as Zambeef, the Millers etc that make millions each month and that…
Ctn… each month and that are doing business in Zambia as opposed to the simple entrepreneur that is trying his hardest to make ends meet in very difficult circumstances.
Great. Why not start with your fellow Cabinet members, top civil servants, various presidential appointees, “briefcase” political party presidents, self proclaimed man and woomen of God, irrelevant but politically connected NGO’s …..?
Downsize the government! Then learn how to make money!
No one can comply with Zambian taxes and licenses. Why can’t you target footballers and Ministers? To run a small business in Zambia you require up to 10 licenses and permits which are renewable every year. It’s madness! Only crooks like Hichilema and Chitotela can thrive in Zambia the rest of us kuwayawaya chabe
There are just some people who you just feel like punching when you see their faces. This man is one of them. He has been n that position for months now but we can’t see a single achievement. This is why we in upnd when we form government each ministry will have a 6 monthly appraisal which will be made public in order for the electorate to see what each ministry is doing. My whlte wlfe is lying next to me after a heavy night. She wore very revealing outfit such that I ripped off when we came home. We did it right in kitchen
SIR NG’ANDU DON’T BE OBSESSED WITH LOW TAX COMPLIANCE ONLY. LOOK AT THE CAUSES. ESTABLISHMENT OF MANUFACTURING INDUSTRIES SUCH AS THOSE BASED ON COTTON, SUNFLOWER, MINERALS AND OTHERS IS THE KEY TO HEALTH TAXATION. WHEN PEOPLE ARE WORKING IN WELL ESTABLISHED INDUSTRIES TAXATION IS NEVER A PROBLEM.
YOUR COMPLAINT IS EQUIVALENT TO EXPECTING HIGHER LEVELS OF MORALITY WHEN AMONG CITIZENS WHEN YOU HAVE DELIBERATELY COMPROMISED ALL RELIGIOUS PRINCIPLES!! DIALOGUE WITH YOUR COMMERCE COUNTERPART!
Supreme leader HH of the UPND who has hidden the privatisation loot in the paradise papers because of his greedy and bitterness has not been paying taxes because the money he looted is Panama…So Mr Finance Minister start from there and every one will comply…
I am afraid Dr Ngandu is slowly soiling himself by not putting the truth across to his Economically clueless bosele! Unfortunately, he is slowly drifting from the Professionalism we expect of him! Sometimes, you need to be brutal and bold with the truth about the economic situation the way Magande was! Trying to sugarcoat faecal matter won’t help! What Zambia needs right now is less government and a bigger private sector. Instead of giving incentives to the already overrated private sector in the 2020 budget, you have given it more poison! Very unfortunate!
For me it seems ZRA only collects from those businesses in urban areas and have failed to establish a system convenient and accessible enough for those doing business in rural set ups like shangombo for example. Secondly parastatal organizations are the biggest culprits in tax compliance issues what are you doing about this. Thirdly ZRA should outsource or engage small businesses whose focus is debt collection as well as tax compliance inspectors to help collect tax in places ZRA offices ain’t present. Zambia is wide and diverse therefore diversify the collection and compliance system. Some tax payers are not literate enough to use the online systems and find it hard to move from their place of established business to towns to pay their taxes and submit returns therefore please find a…
Ctnd: a way to make it convenient for them. Lastly, be a responsible government then people will have confidence in your abilities and development agendas or programs because others could be shunning from paying tax due to the perceived abuse, misuse, and mismanagement of resources by the current regime. This shunning by people or under declaration of taxes if left unchecked can be recipe for disaster in a country but it must start with you the government by being firstly accountable and then responsible with the nation’s resources. For once the Zambian people would like to read a good report from the auditor general and FIC as well as see where their money is going.
@joker rather than spend money and time employing questionable tax agents why not just simply create a base tax on the purchase of wholesale items which is directly remitted to ZRA at each purchase? In other words say an owner of a kantemba/ SIDO business in Shangombo goes to Kalabo to pay for an order of boom soap, candles, biscuits, soya chunks and cooking oil, this kantemba owner who doesn’t have a TPIN and is not even a registered tax payer will simply pay an additional amount compared to the one who has a TPIN and is a registered tax payer who has been filing returns and paying taxes. The key here is for ZRA to work in partnership type with Whole Sale businesses. The time it would take to give all these tuntemba owners TPINS and teach them how to make returns and payments will…
Ctn… The time it would take to give all these tuntemba owners TPINS and teach them how to make returns and payments will take years so let’s not kill ourselves when the solution to the problem is simple and straight forward. Just as VAT which Penza introduced in 1993 was the one saving measure which provided revenue to the State at a time we were completely broke this base tax on Wholesale items too could help immensely.
Step 1 – It does not mean when tax revenues go down, then businesses are not paying tax! It simply means there is little or no liquidity in the economy with less money to tax! First step if GRZ wants more revenue is reduce the size of GRZ – abolish certain positions like DCs, Provincial and Religious Affairs Ministers, Fuse some Ministries like the two Education Ministries into one, abolish certain director positions that don’t serve any purpose and streamline ministry administration, retrenchment excess baggage in the Civil service, Local Government and Parastatals! Privatize parastatals which are parasitic on the treasury like ZAMPOST!
Step 2 – Do more of step 1 and stop the hemorrhage through theft and corruption which is increasing every year as per FIC and AG reports!
@2020, don’t you think that if the government came up with tax system similar to that which ZANACO has where people can easily deposit and withdraw money anywhere as long as an agent is there. ZRA should still MTN motto of “everywhere you go” in establishing these partnerships. And @ xenoman, yes money maybe hard to come by in these tough conditions but you can agree with me that from long ago ZRA has had a tax base only limited mostly to urban areas and border crossings. 55 years on till today we still have that issue of parastatal companies defaulting on their tax obligations.