• 33 councils will collect rental income and turnover tax in markets on behalf of ZRA.
• Local councils will receive 10 percent commission from their total tax collection.
• The rest of the councils will be engaged as tax collectors in the second quarter of this year.
Zambia Revenue Authority (ZRA) says the appointment of 33 councils to collect taxes from the informal sector will enhance tax compliance and expand the tax base.
Speaking during the signing ceremony on the appointment of local authorities as tax collection agents in Lusaka, Commissioner General, Kingsley Chanda said the local authorities will receive 10 percent commission after collecting rental income, base tax and turnover tax in markets and bus stations.
‘The taxpayers will still be using the various Zambia Revenue Authority payment platforms to remit this tax,’’ he said.
Mr. Chanda noted that councils are strategic partners in revenue collection as they have administrative structures which are spread across the country.
The Commissioner General also revealed that the rest of the councils will be contracted to be tax collectors in phase two, which will be done in the second quarter of this year.
The contracts of the 33 councils we are signing today is phase 1 and the rest of the councils will be contracted in phase 2,’’ Mr Chanda said.
Meanwhile, Local Government Service Commission Chairperson Amos Musonda said councils have the capacity to manage tax collection from the informal sector.
Mr. Musonda also said the appointment of local councils as tax collectors will improve their revenue base.
‘’Today’s signing is a testament of government’s resolve to empower individual councils with more revenue to improve service delivery to the people,’’ he said.
He said ZRA has assured him that the10 percent commission entitled to the councils will be remitted as soon as the councils deposit their tax collection revenue.
Lusaka City Council, Kitwe City Council and Mufulira Municipal Council are among the councils that have been tasked to collect taxes from the informal sector on behalf of Zambia Revenue Authority.