Determined to extract the withholding tax from all people renting out properties, the Zambia Revenue Authority plans to tap into the clients data base at ministry of lands, Zesco and the water utility companies.
Recently ZRA announced that all property owners must pay 10% withholding tax and launched a campaign for people to register their property numbers but due to poor economy in the country, there has been a low turnout. The authority is now stuck as the estimated revenue from properties has not been met.
ZRA has now resolved to engage ministry of lands as well as tapping into the Zesco and water utility companies to try and extract the amount at pay point by adding it to electricity and water tariffs. With the already high tariffs, what it means is when your property is estimated to be rented out at K3,000 per month then when you go to pay for a monthly water bill, 10% of that amount will be added to one’s bill and deducted whenever you pay.
“We hoped that people would comply but there has been very low compliance and we cannot invoke the law because it would mean arresting almost the whole country, and which politician would risk that?” jokingly said a ZRA source.