| The Citizens Democratic Party P.O.Box 37277 Lusaka, Zambia. Tel: +260-955-600674 Email: citizens@thecitizensdemocraticparty.com |
POWERED BY CITIZENS LIKE YOU.
| Third Agenda |
 |
| |
 |
| |
 |
| |
 |
| |
 |
 |
| |
 |
| |
 |
| |
 |
| |
 |
Ensure that all persons and organizations eligible to pay taxes share the country’s tax burden. |
1. Current tax rates are too high 2. Inefficient revenue collection system 3. Only a small percentage of the country’s workforce, business organizations and individuals pay taxes 4. Individuals and small businesses in the Informal sector do not pay tax 5. Weak enforcement of laws against tax evaders 6. Book keeping and accounting practices almost non existent in small and medium scale businesses |
1. Pass legislation to reduce tax rates to affordable levels 2. Equip ZRA with technology and revise the mode of payment system to maximize revenue collection and root out corruption. 3. Formalize the Informal sector; i. Ensure that all persons engaged in business activity are registered with the registrar of companies and appropriate licenses obtained. ii. Ensure that all employees are registered with ZRA and Ministry of labor. 4. CDP will embark on an ambitious exercise to have an accurate database of all employees and income in Zambia. Employers will be required to provide income records for all employees regardless of job title to ZRA. Any employer not complying will be heavily fined and or face jail time. This will also apply to informal employment e.g. house keepers. The idea is to track all income in order to efficiently collect taxes consequently reducing the burden on all Zambians. 5. CDP will create a tax system that protects the low earning Zambians as well as the disadvantaged by creating tax caps. These caps will be tax limits or exemptions for qualifying Zambians who earn a certain amount of income in a given year. These limits and or exemptions will be determined by the living wage as determined by current central statistical data of consumer prices and living expenses. These limits and or exemptions will be revised bi-annually and adjustments made accordingly. 6. Ensure that book keeping and accounting practices are adhered to by business owners. 7. Accountants and accounting firms will be encouraged to render book keeping, payroll and tax preparation services at an affordable fee to business owners that can not afford to employee an accountant. 8. Ensure that all persons earning an income file tax returns with ZRA 9. Strictly enforce laws against tax defaulters and evaders |
| The CDP Solution |
The Problem
| GOAL |
"Putting People First in tax relief by broadening the tax base"
Since independence, the government has maintained high income and payroll taxes for citizens employed in the
so-called "formal sector". This has resulted in high taxation imposed on this segment of our population, who are in effect
carrying the tax burden of the so called "informal sector". The only way to provide relief to the highly taxed employees
and businesses would be to share the "tax-burden", which is simply broadening the tax base.
Broadening the tax base requires that we formalize the so called "informal sector", where billions of tax revenue is lost
every year, due to the numerous UNTRACKED cash transactions in this "UNDERGROUND" economy, and in part due to
lack of enforcement of current existing Zambian laws regarding business practices. In order to have tax revenue
collected from the informal sector, we need to INCREASE and redefine business licenses, according to the nature and
size of the business itself. We encourage people to be entrepreneurs, whether from home, a roadside or an actual
office, but in order for them to operate, they need a LICENSE which will require them to pay tax on income received. For
the CITIZENS DEMOCRATIC PARTY, this is simple party policy, and the actual finer details on how we determine who
pays what amount, will be left to the specialized technocrats whom CDP will utilize. We already have the Zambia
Revenue Authority, which will take on the task of checking that licenses are produced on any would-be business. A
successful implementation of this program, will then take away the tax burden on the current "formal" sector, as we will
then be able to reduce taxation on this segment, supplemented by the new contributors to our tax base.
Since independence, the government has maintained high income and payroll taxes for citizens employed in the
so-called "formal sector". This has resulted in high taxation imposed on this segment of our population, who are in effect
carrying the tax burden of the so called "informal sector". The only way to provide relief to the highly taxed employees
and businesses would be to share the "tax-burden", which is simply broadening the tax base.
Broadening the tax base requires that we formalize the so called "informal sector", where billions of tax revenue is lost
every year, due to the numerous UNTRACKED cash transactions in this "UNDERGROUND" economy, and in part due to
lack of enforcement of current existing Zambian laws regarding business practices. In order to have tax revenue
collected from the informal sector, we need to INCREASE and redefine business licenses, according to the nature and
size of the business itself. We encourage people to be entrepreneurs, whether from home, a roadside or an actual
office, but in order for them to operate, they need a LICENSE which will require them to pay tax on income received. For
the CITIZENS DEMOCRATIC PARTY, this is simple party policy, and the actual finer details on how we determine who
pays what amount, will be left to the specialized technocrats whom CDP will utilize. We already have the Zambia
Revenue Authority, which will take on the task of checking that licenses are produced on any would-be business. A
successful implementation of this program, will then take away the tax burden on the current "formal" sector, as we will
then be able to reduce taxation on this segment, supplemented by the new contributors to our tax base.
 | |  | |  | |  | |  |
 | |  | |  | |  | |  |
| Putting People First |
| Draft Manifesto |