By Staff Writer, Kitwe
Green Party President Peter Sinkamba has wondered why Zambia Revenue Authority
(ZRA) is imposing withholding tax on rental income of every individual who owns a residential property.
Mr Sinkamba says what ZRA is doing is no different from 'ukukumbwa nefyo tabalya'.
Mr Sinkamba has also written to the
Minister of Finance Margret Mwanakatwe demanding
immediate issue of a waiver to formally exempt individuals
who own residential properties from paying withholding tax
on rental income.
He said that the waiver should hold until
an equitable system is put in place to ensure poor and
unemployed landlords are unduly exploited by Government.
Mr. Sinkamba disclosed this in Kitwe yesterday following
the lapse of the deadline set by ZRA Commissioner General Kingsley Chanda requiring all
landlords and tenants to register for withholding tax by 1st
March.
He said it is improper for government to issue
ultimatums before amicably resolving the Pay As You Earn
(PAYE) issues.
“For example, the Income Tax Act provides for a system of
taxing emoluments. The word ‘emoluments’ is quite
extravagant. According to Section 2 of the Income Tax Act, it
includes wages, salaries, overtime, leave pay, commissions,
fees, bonuses, gratuities and any other payments from
employment or office. For some unemployed or retired
township dwellers, renting of servants’ quarters or part or
whole house is their office. Some are orphans, others are
widows whose only source of income are those quarters or
parts of houses or indeed whole houses. So, to them, the
houses is their employment and their office. How then do
you go ahead to give deadlines without resolving these
pertinent issues?” said Mr. Sinkamba.
Mr. Sinkamba explained that according to Section 45 of the
Income Tax Act, an income of K3, 300 gross per month is not
reportable income.
He said that such an income is tax free
and added that beneficiaries are obliged by law to report
that income to ZRA.
Mr Sinkamba further said the tax free provision does not
only apply to those who earn income through formal
employment but even those who earn their income through
informal means.
He said the rebate should also extend to
landlords who charge rental which is equivalent or below
the taxable threshold.
“The Income Tax Act provides a tax rebate for persons who
earn gross revenue of K3,300.00 per month. Most, if not all
landlords in Chimwemwe, Wusakili, Kanyama, Mandevu and
elsewhere in the countrywide do not earn that kind of
money from rent charges. Almost 98% of households
countrywide are not worth that kind of money in rental
charges per month. So, why bother God’s people to register,
and give them deadlines, when you know for fact that they
are statutorily exempt from reporting their earnings to ZRA?
It is like ukukumbwa nefyo tabalya,” he quipped.
“Zambia is a constitutional democracy. It must be governed
according to the National Value and Principles which the
President talked about last week on Friday. Some of the
values and principles include human dignity, equity, social
justice, equality and nondiscrimination, good governance
and integrity. The threats by ZRA are nowhere closer to
these values and principles. ZRA has unduly sent serious
shivers in our people in compounds. What makes matters
worse is that the vast majority of our people are extremely
vulnerable because they cannot afford legal representation
if ZRA were to pounce on them.
“You see, Government is a making of the people. Leaders
are elected into government by the people, to serve the
people, and not to exploit, intimidate or bother them for
nothing. Therefore, when leaders are privileged, by the
people, to serve in government, then the leaders in return
have an onerous responsibility to act responsibly towards
people’s interests and complaints. Sadly, and shockingly so,
our colleagues in the PF Government have drifted away
from National Values and Principle enshrined in the
Constitution,” the Green Party leaders grieved.
“This issue of withholding tax requires a sober approach by
our colleagues in Government not threatening the people.
Those in Government must always remember that according
to our constitution, ultimately sovereign authority is vested
in the people. They must always remember that the power
has just been temporarily lent to them on borrowed time for
that matter. It is therefore improper and an exhibition of
serious irresponsibility to threaten the people simply
because they are poor, illiterate, and hopeless.
“The deadline set by ZRA lapsed two week ago. Our people
do not know what will follow next. The threats and
ultimatums by ZRA have really sent serious shivers in our
people, especially those in compounds. These people are
extremely vulnerable because they cannot afford legal
representation if ZRA pounces on them. So to avoid their
misery, just in case ZRA decides to be brutal, as the Green
Party, we have decided to write the Minister of Finance to
immediately place a waiver on rent income withholding tax
until an equitable system is put in place to ensure that poor
and unemployed landlords are unduly exploited by
Government. We hope she takes this request seriously and
with the urgency it deserves”.
No comments:
Post a Comment