ZRA appeals to banks to promote on-line tax payments


THE Zambia Revenue Authority (ZRA) has urged the remaining six commercial banks to join forces with the authority in providing online tax payments which was faster and cheaper.

In 2014, ZRA introduced an online tax payment system aimed at reducing the burden on tax payers and cost of administration.

ZRA commissioner finance Bridget Muyenga said it was important for the remaining six commercial banks to join the other 13 which had already implemented the electronic payment system (e-Payment) which promoted efficiency in settling taxes.

Speaking when the authority met chief executive officers from commercial banks and other financial organisations, Ms Muyenga said the online system eliminated inconveniences which affected tax payers such as being blacklisted by ZRA.

“We appreciate the convenient of the online payment system among other methods of paying taxes. ZRA stands ready to always ensure that paying tax is 24/7. “For this reason, we would like to urge the remaining banks that have not yet implemented the ZRA e-payment solution to quickly come on board to give their clients. This is an easy payments system for taxes,” she said.

Ms Muyenga explained that the online system was simple, flexible, secure and faster while allowing taxpayers to make payments to ZRA through banks using internet.

She said customers could pay their taxes at any time and from anywhere provided they had internet and electronic devices.

“The e-payment system eliminates the inconveniences that tax payers suffer when blacklisted by ZRA. We recognise the role banks play in assisting customers pay taxes,” she said.

She said the authority decided to introduce the e-payment system to change how taxes were being made.

One thought on “ZRA appeals to banks to promote on-line tax payments

  1. I appreciate the fact that Zambia Revenue Authority is trying to use e commercial in its operations. That is very commendable.
    However, as someone who has had a few problems with ZRA regarding e payments, I would suggest that, contrary to encourage the use of E payment, ZRA must engage the Zambia Electronic Clearing house and Bank of Zambia to have exceptions with the ZMK99,999.99 cheque limit and allow those paying taxes to raise cheques above that limit.
    Why am I saying so?
    1. E payment transfer does not directly go to ZRA but to BOZ. This entails that the ZRA will have a debit transaction amount from the E – return submitted. Whilst waiting for the credit from the E payment to hit the account.

    2. E payment transaction takes a longtime to be credited to the account. Of all the e payments that I have raised, none has taken a month or less to hit the account. Some have taken more than a year. And during that time their system will raise penalties and interest to the account, even though there is a PRN generated by their system to indicate that there was a credit transaction pending.

    3. When these system penalties are raised, having them reversed by ZRA is a nightmare

    I am not writing this from without, I have made E payments and several of them took more than one year to hit the account, and of those that hit some were misposted. And all these attracted late payment penalties and interest.
    As I am writing now, ZRA has not yet reversed some penalties arising from these transactions, even after reconciliations. In fact, ZRA garnishees against these amounts whose origin was because of their operational lapses.
    So instead of ZRA running to the banks and haphazardly try to implement the e payment, let them first put their house in order.
    I must add that the system, from my point of view, seems to have everything in place. That is, when you initiate the E payment transaction, there is a PRN which is generated and that is the same PRN used by the bank. That in itself should be enough to trace the transaction for funds allocation. But one wonders how such a transaction can the held in suspense for a year. Whilst the taxpayer accrues penalties.
    So in the interim, I would say that cheques would be much batter, to avoid the inconveniencies and any other storms, arising from the e payment system.

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