KNOW YOUR TAX BASE, ZRA TOLD
THE Zambia Chamber of Commerce & Industry (ZACCI) has challenged the Zambia Revenue Authority (ZRA) to get to know its tax base better by simplifying tax procedures.
ZACCI was confident that simplifying tax procedures and making them more accessible could encourage businesses to register and pay taxes.
Through its president, Anthony Kabaghe, ZACCI encouraged ZRA to continue applying soft diplomacy and an opendoor policy, which would go a long way in incentivising voluntary tax compliance from citizens.
Mr Kabaghe said this in Lusaka during a recent virtual meeting between ZRA and ZACCI where they held a consultative dialogue meeting with different key players and the business sector.
“Tax education and collaborations at the grassroot level are the key to expanding the tax base. Educating business owners on the importance of taxes, the benefits of compliance, and the penalties for non-compliance can encourage more businesses to register and pay taxes,” Mr Kabaghe said.
ZACCI, during the meeting, was steadfast in calling for enhanced tax education among citizens outside of major economic hubs and across Zambia.
“Engaging the informal sector for tax purposes requires a couple of approaches such as simplification of procedures, incentives, education, collaboration, technology, and flexible payment options,” Mr Kabaghe said.
During the meeting, ZACCI highlighted several challenges, including cash flow challenges affecting compliance, misinterpretation of tax laws, and difficulty in accessing tax incentives and exemptions.
The participants also discussed the need to simplify the tax system to make it more accessible to businesses and enhance voluntary compliance.
Responding to ZACCI, the ZRA Commissioner-General, Mr Dingani Banda, explained that Government had put more emphasis on the need to support the MSME sector, and support through tax incentives.
During the engagement, the participants discussed the challenges business entities face in meeting their tax obligations and explored potential solutions. The meeting also provided a platform for the participants to give feedback on matters of taxation.