BE RUTHLESS, ZRA TOLD

…Dr Situmbeko Musokotwane directs Zambia’s tax collector to be ruthless, but professional in collecting what is due to the treasury 

By PRINCE MABUMBA

MINISTER of Finance and National Planning, Situmbeko Musokotwane has directed the Zambia Revenue Authority (ZRA) to be ruthless but polite and professional in executing its mandate of collecting tax revenue.

Dr Musokotwane has disclosed that 80 percent of revenue collection by ZRA was from no more than 800 contributors and called for the broadening of the tax base so that more revenue could be collected for the country’s treasury.

Dr Musokotwane says Government has been pushing hard towards broadening of the tax base, which calls for more investment inflows to enable for the necessary collection of taxes.

The minister was reacting to submissions by various stakeholders during the Townhall Forum on the 2023 mid-year economic performance and 2024-2026 Medium Term Budget Plan in Lusaka yesterday.

“ZRA must be ruthless but polite and professional in the manner tax is collected but beyond that, more and more investment in our country is needed because at some point, you can say that you cannot collect taxes from nothing. Of course, there are difficulties in taxes but the more there are who are able to pay taxes the better.”

“I think I agree with most of what has been said, we will endeavour to get this implemented as quickly as possible. Of course it is impossible to implement everything because just the capacity to take note and to do these things, but I think the direction is very clear. 

The commitment is very clear. We will push very hard for our economy to grow even bigger,” Dr Musokotwane said.

Earlier in his submission, Economics Association of Zambia (EAZ) president, Isaac Ngoma said ZRA needed to do more to broaden the tax base by including the informal sector. “We had ZANAMACA (Zambia National Marketeers Credit Association) here, I have interacted with ZANAMACA, and I know what is feasible, what is collectable within that informal sector. There is this illusion that people don’t have money there, they probably have more money in cash than a lot of us that are sitting here.”

“But there is no tax collection mechanism that is in existence right now to tax the informal sector. Even if they contribute minimal amounts, it will amount to something worthwhile. We heard the numbers from the ZANAMACA president [Mupila Kameya], that it is feasible and we want to interrogate that and ensure that they come to the table and contribute to this nation,” Mr Ngoma said.

 He also called on ZRA Commissioner General, Dingani Banda to ensure that leakages at the authority are plugged.

Mr Ngoma expressed concern that there were still some things happening at ZRA, which were not good for the interest of the nation

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