Banks and other Financial Institutions are required to deduct the Medical Levy from gross Interest earned by any person and Partnership on any Savings or Deposit Accounts, Treasury Bills or Government Bonds. Medical Levy is thus chargeable on all interest earnings from Banks and other Financial Institutions by any person, natural or otherwise. The levy so deducted will be remitted to the Zambia Revenue Authority
The rate is 1% on the interest earned and the Banks and Financial Institutions are required to record the details of the interest paid, amount of interest paid, amount of levy deducted and other particulars as the Commissioner General may require on the prescribed form and submit to the Zambia Revenue Authority within fourteen days from the end of each charge year
Penalty for Late Submission
Where the Medical Levy is not submitted by the due date, a penalty of 5% of the amount of the Levy payable will be charged per month or part thereof for the period the levy remains unpaid.