Business

‘Strengthen non-tax revenue collection’

KABANDA CHULU, Lusaka
THERE is need to strengthen the collection of non-tax revenue whose contribution to the annual budget is less than 10 percent, Ministry of Finance permanent secretary for economic and finance management Mukuli Chikuba has said.

Mr Chikuba said Government is devising various measures to strengthen public financial management strategies to ensure efficient, effective and accountable use of public resources.
“To maximise revenue collection on the domestic front, we are strengthening non-tax revenue collections in order to generate sufficient funds for national development through the budget.
“We have not done much in this area yet in other jurisdictions, its contributions is similar to that of tax revenues…We need to tighten regulations, for instance, at Road Transport and Safety Agency, only 52 percent of vehicles are captured and we have too many properties but very little is collected as rates,” he said in an interview recently.
Notable challenges affecting institutions collecting non-tax revenues include lack of automated systems in the collection, receipting, banking and monitoring of revenue.
Others are the lack of integrated financial management systems between government institutions and commercial banks and among government institutions themselves.
Government has since embarked on measures to address the challenges through engagement of some commercial banks where the public is paying for services and money is collected and swiftly transmitted to the main treasury account at the Bank of Zambia.
It is envisaged that once the point-of-sale, the teller implant and other banking facilities are fully implemented, revenue collection will be enhanced, and government officers will be able to concentrate on their core functions of service provisions.

 

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