After mopping up (kolopa) all the state coffers through corrupt deals, the PF government has now unleashed Zambia Revenue Authority (ZRA) officers to strictly enforce payment of withholding taxes for house rentals.
Highly placed sources from within government say the PF government do not even have money for fuel procurements and salaries for civil servants and have since embarked on compliance visits to people’s homes.
“They will start arresting and prosecuting tenants and landlords who soon because state coffers are completely dry because the mining houses have equally refused to pay taxes. Even the fuel increase has nothing to do with depreciating Kwacha because the current fuel stock was ordered a long time ago. The fact is they have no money completely. Even worse, most of the lenders are now refusing because of lack of capacity to payback because of outstanding loans which have become due,” said a highly placed source from ZRA and Ministry of Finance.
Sources said the law on withholding tax for rentals has been there for sometime but most government have just ignored it like they do with other laws that are of less consequence such land rates.
Officials also complained that the law was very vague as it does not define who should pay what taxes when it should have been done depending on the value of property than applying a uniform tax.
“If you go in most places, some plots are commercial, others are residential, while others are basically shanty houses but PF have applied the same tax regime for all properties. They are basically applying the same tax regime they did with the mining companies that refused to pay because they did not take into consideration the paying capacity of each mine,” sources have revealed.