The Zambia Revenue Authority is elated with the Councils’ contribution of K7.5 million to revenue collection under the previous contracts which expired this year.

Speaking during the signing ceremony of the new contracts, ZRA Commissioner General Dingani Banda stated that, “in terms of milestones under the previous contracts, the local authorities managed to visit a total of 12,733 taxpayers. these visitations resulted in 9,775 taxpayers registered for rental income tax with associated tax collections of k7.5 million as at the time of contract expiry.

He added that the councils are better placed to work as tax agents since they have presence in every district and have the capacity to work effectively as agents.

And Ministry of Local Government and Rural Development Permanent Secretary Mr. Maambo Haamaundu in charge of Administration, represented by Director- Planning and Information Dr. Ngoza Munthali, stated that local authorities have been appointed as tax collection agents to fulfil the obligations of the partnership because they are present in all districts and have the capacity also in terms of human capital.

Under the new contracts, the local authorities are being appointed to collect, within their jurisdictions, four (4) tax types which are turnover tax, rental income tax base tax and presumptive tax on passenger transport.

The strength of this partnership depends on technological advancements and country-wide presence which are the strengths that the parties bring on board to enhance tax compliance and expand the tax base.

Of the 33 local authorities across the country that ZRA had contracts with, Lusaka City Council, Chilanga District Council, Chongwe Municipal and Kafue town Council signed their new contracts yesterday while the remaining will be signing within a few days.

The first contracts to appoint Councils as Tax Collection Agents in the Informal Sector run for two (2) years from February 2021 to 31st January 2023.

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