By BUUMBA CHIMBULU
THE Zambia Revenue Authority (ZRA) has called upon all business houses to support the tourism sector by complying with the requirements such as paying the tourism levy.
This industry can only be built if all stakeholders participate, according to the ZRA Corporate Communications Manager, Topsy Sikalinda.
Mr Sikalinda emphasised that stakeholders could participate in growing the industry by paying tourism levy as soon as their businesses had been registered which was currently charged at 1.5 percent of the total accommodation and/or events bill.
“Tourism enterprises are responsible for charging and collecting tourism levy from their clients on behalf of the government which they then remit to the ZRA. To facilitate the collection of the tourism levy, tourism enterprises are required to register with ZRA for this specific tax type.
“After charging and collecting tourism levy from their clients, they are required to submit a tourism levy return and make any payment due by the 14th day of the month following the one in which the levy was charged,” he said in an interview.
Mr Sikalinda emphasised that tourism levy was only applied on accommodation and events services.
Further, he explained, tourism levy should not be confused with Value Added Tax (VAT) and the service charges, as it was different from and was exclusive of these two charges.
“An event, on the other hand, is defined as a meeting, conference, convention, exhibition, gala dinner, a social, family-oriented, or indeed a special occasion with 25 persons or more, or an organised occasion,” Mr Sikalinda said.
He said the due date for the remittance of the tourism levy was every 14th day of the month following the one in which the levy was charged.
He indicated that late payment attracted a penalty of five percent of the unpaid amount per month or part thereof during which the tourism levy remains unpaid.
“Tourism enterprise operators are expected to charge and make correct declarations of the tourism levy so charged and collected from their clients as they submit their returns. Any understatement in the return attracts a penalty of five percent of the omitted or understated amount,” Mr Sikalinda said.
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