In a bid to make companies and importers' tax payments easier, the Zambia Revenue Authority (ZRA) has released an electronic payment (e-payment) system that will also improve its revenue collection.
Importers and other taxpayers can, for the first time, pay their taxes via the Internet from anywhere in the world as the system eliminates payment bottlenecks from the supply chain.
The e-payment mechanism is expected to expedite the flow of revenue to the treasury. It will also eliminate intermediaries - like clearing agents - from the payment chain.
Better ICT infrastructure in Zambia has improved Internet connectivity throughout the country.
Some of the benefits of the e-payment system include the availability of a 24-hour payment platform, guaranteeing no tax payment delays.
The secure payment system gives importers full payment control and allows companies to make payments in a timely and less stressful manner.
After an open tender floated in March 2009, ZRA has been working with a consortium of registered commercial banks: Citibank Zambia, Access Bank Limited and Zambia National Commercial Bank.
The system went live last week, but details of project's value and platform used have been withheld. According to Access Bank, more than 100 businesses have already pre-registered for e-payments.
The new payments system makes it possible for taxpayer to make their payments anywhere and at anytime, thereby expediting the flow of revenue to the treasury.
ZRA hopes to extend the improved payment mechanism to domestic taxes encompassing e-filling of returns and e-payments.
Previously, taxpayers have had to wait in long queues to settle their tax liabilities, and taxpayers coming from remote areas had to travel long distances to ZRA payment centres. In some instances they had to spend nights at ZRA offices just to make their payments.
“It was the awareness of these challenges that prompted ZRA to start working in the background in a bid to improve the payment systems for the benefits of the taxpayers,” says ZRA commissioner general Wisdom Nhekairo.
“With the new tax payment system, collection of taxes will be made at the right time and taken to the State treasury at a lesser cost to the tax payer”, says Christopher Mundia, ZRA chairman.
To be eligible to use the e-payment system, interested taxpayers must have a tax payer identification number issued by ZRA and a bank account with any of the participating banks.
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