By CASSEY KAYULA –
THE Centre for Trade Policy and Development (CTPD) has advised the Zambia Revenue Authority (ZRA) to expedite the tax reforms as doing so will boost domestic revenue collection.
CTPD acting executive director Isaac Mwaipopo said the ZRA should expedite the implementation of planned tax reforms to enhance tax collection.
Mr Mwaipopo said tax collection in Zambia has had a huge burden on the middle income population and the vulnerable in society, especially when levied through pay as you earn (PAYE) and indirect taxes such as Value Added Tax (VAT).
He said this in a statement released Lusaka at the weekend.
“CTPD notes  that some of the measures and reforms that have been undertaken by ZRA among which includes the implementation of the E-Tax system for corporate tax collection piloting of the Mineral Value Chain Monitoring Project,” Mr Mwaipopo said.
He said this situation could be rectified if the tax base was broadened.
Mr Mwaipopo said the organisation was aware that there were plans to undertake a number of other reforms aimed at broadening the domestic revenue base.
“Some of these include the need to introduce the electron fiscal device which aims at capturing value VAT at the point of sale plans to bring on board local authorities to help in the collection of taxes.
“Reviewing operations and presence of ZRA on all border posts, enforcement of withholding tax on rentals and conducting a forensic
audit on mining firms,” he said.
Mr Mwaipopo further added that there was urgent need to expedite these processes as they could help to enhance the institutions ability to collect more revenue.
“Zambia’s Economic recovery Plans might face a challenge realizing this goal if loopholes adding to revenue leakage are not properly addressed.
“If the gaps in the taxation area are addressed the country would be better placed to finance its own development and would not be so reliant on external borrowing,” he said.