ZAMBIA Revenue Authority Commissioner General Kingsley Chanda says there is need for Zambian owned business entities to take advantage of the request for Expressions of Interest that the authority advertises by bidding for tenders. Chanda yesterday said it was in the interest of the authority and the country to ensure that local business houses were given priority in the awarding of contracts.
He said such would empower and enable them to contribute to the national economy.
“Zambian owned business entities should take advantage of the request for Expressions of Interest that the authority advertises by bidding for such tenders,” Chanda said in a statement issued by ZRA corporate communications manager Topsy Sikalinda.
Chanda expressed concern over the low number of entities that had bid for the Expression of Interest for the appointment of Tax Collection Agents in the informal sector.
He said only a few companies bid to collect the four tax types as advertised by the authority, out of which nine reached the technical stage and were shortlisted for the submission of technical proposals for another evaluation process.
“It was after this process that three entities namely First Alliance Bank Limited, Sherwood Greene, and the Zambia National Marketeers Credit Association (ZANAMACA) were awarded contracts to collect taxes on behalf of ZRA. First Alliance Bank was awarded the contract to collect Turnover Tax, Sherwood Greene to collect withholding tax on rental income, and ZANAMACA to collect base tax,” Chanda said.
“On August 15, 18, 21, 2017, ZRA advertised in the Times of Zambia, Daily Mail, and Daily Nation newspapers respectively requesting companies interested in partnering with the authority to collect Turnover Tax, Base Tax, Presumptive Tax on Taxis and minibuses, and withholding tax on Rental Income, on behalf of the Government of Zambia to submit the bids.”
Chanda said the appointment of the tax collection agents was in line with the provisions of Section 7 of the Income Tax Act, Chapter 323 of the Laws of Zambia, which allowed the Commissioner General to appoint tax agents to collect base tax, presumptive tax, turnover tax, and tax on rental income.
“On June 15, 2018 finance minister Margaret Mwanakatwe signed into law the Statutory Instrument (SI) number 48 of 2018 for the appointment of tax collection agents,” Chanda said.
He further said all bids advertised by ZRA were subjected to a three-phased evaluation criteria namely preliminary, technical, and commercial evaluation in accordance with the tender evaluation criteria and was always provided for in the solicitation documents.
Chanda assured Zambians that contracts were offered to the best bidder in accordance with the laws of the Republic of Zambia.
“The authority will soon advertise in the media to call on firms to partner with ZRA in collecting different taxes. I am urging the local firms to ensure that they put all documentation and requirements in order and bid for different tenders when re-advertised,” said Chanda.