ZRA ROLLS OUT NEW SYSTEM TO CAPTURE CASH SALES IN SHOPS
By BUUMBA CHIMBULU in Siavonga
THE Zambia Revenue Authority (ZRA) will next month begin piloting the Electronic Fiscal Devices exercise in Lusaka which is meant to capture revenue from shops that do not remit tax once customers buy goods which attracts Value Added Tax (VAT).
These devices are facilities that will enable ZRA to have direct access and connectivity to details being undertaken by various transactions that attract among others VAT.
ZRA commissioner, modernisation and corporate strategy, Dingani Banda, disclosed that they would begin with implementing the exercise with 2, 000 devices from the initial 1, 000.
He was speaking in an interview on the side-lines of a media workshop on taxation in Siavonga yesterday.
Mr. Banda explained that this concept was aimed at improving tax compliance to about 75 percent from the current 53 percent which was low.
"The cash registers will now have these devices which will enable that when a person purchases goods from a shop, they are given a receipt and that transaction will be instantly noted at ZRA, "The starting point for the pilot project will be with about 2, 000 devices and our target is to start with Lusaka and see how we will move forward but we will engage stakeholders on this," Mr Banda said.
Mr. Banda emphasised that the concept was not meant to introduce any new taxes.
He explained that the aim was to ensure that shops that were not remitting the tax were captured.
"This is not meant to introduce any new taxes because people are already paying these taxes when they buy goods. So if you go to a shop and buy goods which attract VAT, the mere fact that you bought you have paid that tax so there should not be any misconception that a are introducing a new tax," Mr. Banda said.
Mr. Banda, however, warned that in an event that the cash registers were not used, ZRA enforcement team would take note and interven.