Agents to collect informal sector taxes

THE Zambia Revenue Authority (ZRA) will partner with private sector organisations by appointing them as agents to collect taxes from the informal sector.

ZRA corporate communications manager Topsy Sikalinda says this is part of the authority’s strategy to broaden the tax base by improving collection systems for taxes such as turn-over, base, presumptive on taxis and minibuses, and withholding tax on rentals.
He said in a statement yesterday that the agents will be key in collecting taxes from all players in the informal sector through smart partnerships with ZRA.
Mr Sikalinda said the decision is in line with the provisions of the Income Tax Act Chapter 323 of the Laws of Zambia.
He said to be considered for selection, ZRA has put in place clear criteria which bidders will be subjected to.
This will include adequate financial and non-financial resources, evidence of effective working collaboration with key stakeholders, a well-organised record-keeping system and good performance.
Mr Sikalinda said successful agents will be required to propose and implement best revenue collection modalities or mechanisms which will guarantee security of government revenues, efficiency and timeliness in tax collection.
“In line with the local empowerment policy of the government, ZRA will give priority to Zambian influenced entities. The bidders are required to submit company registration and valid tax clearance certificates for them to be eligible for consideration.
“The agents, in executing their functions, shall submit all reports on deliverables to the office of the commissioner general under whose direction they will be working. The contracts with agents will initially run for 12 months with a possibility of renewal depending on performance,” Mr Sikalinda said. 

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