Details have emerged that the PF government will be deducting K30 per month from each person who holds a bank account in Zambia. In addition, government will also be imposing and deducting 15% for each transaction; that is, for each deposit or withdrawal whether made using an ATM or at the counter.
Government has already ordered banks to compel all bank holders to register and obtain tax payers numbers from the Zambia Revenue Authority (ZRA).
The government claims that the requirement for account holders to have tax payers numbers is just part of ‘Know Your Customer’ (KYC) as required by money laundering laws.
But banks already know their clients as no one can open a bank account without providing the bank with their NRC, passport or driving licence and other requirements such as addresses. And if this just for banks to know their customers, why register with ZRA?
Ministry of finance contacts tell the Watchdog that once all account holders have obtained the tax numbers, the government will start charging tax and that this will be done by June 2017.
According to contacts, the idea to tax account holders is a brain child of MMD’s Felix Mutati who now runs the PF ministry of Finance.
Government sources says Mutati is a heartless tax man who is desperate to please Edgar Lungu by taxing poor people to raise money for paying off Euro bonds and other loans the PF has been borrowing.
Sources say taxing account holders is just one of the methods Mutati has come up against poor people as he has realised that government has no other means of raising money since there is no production in the country.
Below is the statement issued by banks and government institutions:
See the notice below:
Dear Esteemed Client
One of the new measures announced by the Minister of Finance in his presentation of the 2017 budget to Parliament is to make it mandatory for financial institutions registered under the Banking and Financial Services Act to require all bank account holders to obtain a Tax Payer Identification Number (“TPIN”). This pronouncement was followed by the Amendment to the Income Tax Act through the Income Tax (Amendment) Act No. 45 of 2016 which is effective
on 1st January 2017.
Based on the foregoing, each account holder is required to provide the bank with their new or updated TPIN.
TPIN requirement will form part of the banks Know Your Customer (KYC) process on account opening or account information updates.
We would like to urge all account holders without a TPIN to obtain a TPIN by applying to the Zambia Revenue Authority (“ZRA”). The application for TPIN can be submitted online through the ZRA website and you should have your personal TPIN issued within 48 hours.
All account holders are required to submit their TPIN on email to [email protected]
Below is a detailed step by step process of obtaining a TPIN from ZRA (if you have none) or retrieve your TPIN (if you