Business

TPIN registration will help public to use banks – BAZ

KABANDA CHULU, Lusaka
AWARENESS on the importance of registering for tax payers identification number (TPIN) by bank account holders is critical in mitigating possibilities of the public shunning the banking system for fear that every transaction will be taxed, Bankers’ Association of Zambia (BAZ) says.
Government has this year made it mandatory for financial institutions registered under the Banking and Financial Services Act for all bank account holders to obtain a TPIN to enhance tax compliance.
BAZ public relations and administrative officer Miriam Zimba said with about K6 billion currently circulating outside the formal financial sector, the figure could increase further if ZRA does not adequately sensitise the public on the programme.
Ms Zimba who said the banking sector was not fully engaged in the programme and the implementation of the TPIN may result in increased running costs for banks since there will be need to invest in system (ICT) upgrades to accommodate the process.
“We may see an increase in the amount of monies circulating outside this sector, as people with various concerns over TPIN may prefer to keep their monies everywhere else except in the banks,” she said in response to a press query.
Ms Zimba urged Zambia Revenue Authority to consider extending the timeframe for the implementation of the process to ensure compliance by the bank’s clients.

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