Thursday, April 17, 2008
By NKOLE CHITALA
GOVERNMNET has urged the Zambia Revenue Authority (ZRA) to expand its revenue base to increase domestic resources. Acting Minister of Finance and National Planning, Felix Mutati, said that there was need for the agency to work out a mechanism on how to capture the informal sector into the tax net.
Mr Mutati said the country could still reach the 30 per cent mark in revenue collection if the tax base was broadened as compared to the 18 per cent of Gross Domestic Product (GDP) achieved last year.
“We can still reach the 30 per cent mark in revenue collection if ZRA can work out a mechanism on how to enjoy the 30 per cent as it was in the 70,’s,” he said.
Mr Mutati was speaking at the launch of a policy handbook on enhancing the role of domestic resources mobilisation in development meeting at Cresta Golfview Hotel.
The launch was organised by the ZRA, BOZ, Ministry of Finance and National Planning and UNCTAD.
The last time that the country achieved a 30 per cent mark of revenue collection was in 1970 at 30 per cent of GDP out of which 10.8 per cent was revenue from the mining sector.
But, Commissioner-General Christicles Mwansa said issues of broadening the tax base further through capturing the players in the growing informal sector still remained a major challenge faced by the agency.
“We have a taxpayer charter in place which is a service commitment to out taxpayer that will receive excellent service every time they are in contact with us,” Mr Mwansa said.