Kawambwa Town Council Partners with ZRA to Enhance Tax Collection

Kawambwa, Luapula Province, October 22, 2023 – In a significant move toward improving tax collection and broadening the tax base, the Kawambwa Town Council has entered into a partnership with the Zambia Revenue Authority (ZRA). 

In a statement issued by  Kashi Norman Joel, Public Relations Officer of Kabwata Tow council, the agreement designates the Local Authority as a Tax Collection Agent, empowering them to collect various taxes on behalf of the ZRA.

Taxes to be Collected: Under this partnership, the Kawambwa Town Council will be responsible for collecting turnover tax, rental income tax, base tax, and presumptive tax. 

The signing ceremony and contract handover demonstrated the commitment of both parties to ensure the success of this collaboration.

Isaac Mwale, the Secretary of the Kawambwa Town Council, expressed the council’s readiness for this role and highlighted their advantage as a local presence with the necessary human resources to execute tax collection effectively. 

He emphasized the confidence and trust the ZRA has shown in the council by appointing them as tax agents.

Mwale also welcomed the ZRA’s commitment to training the Local Authority officers involved in this partnership, acknowledging the importance of increasing their knowledge and understanding of the task at hand.

Masauso Mumba, the ZRA Provincial Manager for Direct Taxes in Luapula Province, highlighted the strategic importance of the partnership in broadening the tax base and improving tax compliance among taxpayers. 

The initial focus of the collaboration will be on turnover tax and rental income tax, with base and presumptive taxes to be implemented at a later stage.

Mr. Mumba outlined the specific roles of the Local Authority, which includes providing information to the ZRA through valuation rolls and establishing the status of houses and commercial entities to aid in the collection of rental income tax. 

Additionally, the Local Authority will share information regarding license holders and those with trading permits, along with details about properties owned by the council.

This initiative builds on the Memorandum of Understanding signed between the Zambia Revenue Authority and the Ministry of Local Government and Rural Development in October 2020. 

The agreement empowers Local Authorities to continue generating revenue from the informal sector, thus expanding the tax base and ensuring that every citizen contributes to the tax basket.