By BUUMBA CHIMBULU 

A NEW tax collection strategy known as ‘‘collection at source’’ has been introduced by the Zambia Revenue Authority (ZRA) on all consumption duties.

ZRA commissioner general Kingsley Chanda explained that the strategy would allow the authority to collect taxes at source.

Mr Chanda further explained that companies paying suppliers would directly pass it on first to the authority for tax collection.

“We have changed the way these taxes are collected; we have introduced collection at source where we will ensure that we remit taxes directly from Government paying suppliers where VAT is payable.

“If it is mines paying suppliers both local and foreign, they will withhold the VAT and pass it on directly to ZRA,” he said.

Mr Chanda said the new system would help minimise leakages on consumption taxes which occurred through the current ZRA payment system.

He said the authority came up with the system because 90 percent of domestic revenue collected was from consumption taxes.

He emphasised that 90 percent of taxes were from VAT and exercise duty, which were consumption taxes.

“We have done something about these taxes.  Apart from that we have also set up a specific department within ZRA that will be focusing on VAT collections.

“We will continue with those operations where we will be ensuring that taxpayers issue appropriate tax receipts and invoices,” he said.

Mr Chanda the said authority will upscale the collection of taxes especially now that it had a specific department.

He also appealed to the public to ensure that they collected receipts each time they purchased goods as a way of helping the authority to ensure that traders were tax compliant. Mr Chanda said failure to do resulted in the public contributing to tax invasion.

“If you walk away from shops without getting your tax invoices, you are contributing to tax invasion. So please ensure that you collect tax invoices every time you are making a purchase. That becomes the basis of our tax,” he said.

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