Impact of Publicity on Collection of Turnover Tax
1. Project Title
The impact of publicity on the collection of Turnover Tax by Zambia Revenue Authority: A case of the Small Taxpayer Population in Zambia.
Publicity here means all those activities that Zambia Revenue Authority does to ensure that all its activities relating to the taxes administered are well known to the taxpaying community.
The small taxpayer population is a group of taxpayers whose yearly turnover does not exceed K200 million in a particular 12 months year.
2. Research problem
Zambia Revenue Authority introduced turnover tax in April 2004 to counter the decline in tax compliance levels among small traders and contractors.
Revenue collection has been falling in the area of turnover tax amongst the tax registered small taxpayers.
Currently, out of the Taxpayer population of 3822 on the Copperbelt, only 1422 are paying this Tax, partly or in full despite paying tax at a flat rate of 3% on their annual turnover. The rest are not paying. This represents 37.159% compliance level in revenue collection. Therefore the problem we have at hand is to reverse this negative trend of non-compliance by Taxpayers in this category. This is because if 62.841% are not paying taxes, then there is significant loss of revenue and consequently, the government’s capacity to provide social services to its citizens is also reduced. If the Government’s ability to provide social services is reduced, it means reducing poverty levels in the country will be at a slow pace. Therefore it is important to investigate the effect that increasing expenditure on publicity can have on the collection of Turnover tax by Zambia Revenue Authority.
3. ResearchQuestions1.
1. Could the low collections of turnover tax be as a result of low expenditure by Zambia Revenue Authority on publicity?
2. Could the low collections of turnover tax be as a result of poor attitude towards this tax type by taxpayers in the small taxpayer population?
3. Could the poor collections of
The impact of publicity on the collection of Turnover Tax by Zambia Revenue Authority: A case of the Small Taxpayer Population in Zambia.
Publicity here means all those activities that Zambia Revenue Authority does to ensure that all its activities relating to the taxes administered are well known to the taxpaying community.
The small taxpayer population is a group of taxpayers whose yearly turnover does not exceed K200 million in a particular 12 months year.
2. Research problem
Zambia Revenue Authority introduced turnover tax in April 2004 to counter the decline in tax compliance levels among small traders and contractors.
Revenue collection has been falling in the area of turnover tax amongst the tax registered small taxpayers.
Currently, out of the Taxpayer population of 3822 on the Copperbelt, only 1422 are paying this Tax, partly or in full despite paying tax at a flat rate of 3% on their annual turnover. The rest are not paying. This represents 37.159% compliance level in revenue collection. Therefore the problem we have at hand is to reverse this negative trend of non-compliance by Taxpayers in this category. This is because if 62.841% are not paying taxes, then there is significant loss of revenue and consequently, the government’s capacity to provide social services to its citizens is also reduced. If the Government’s ability to provide social services is reduced, it means reducing poverty levels in the country will be at a slow pace. Therefore it is important to investigate the effect that increasing expenditure on publicity can have on the collection of Turnover tax by Zambia Revenue Authority.
3. ResearchQuestions1.
1. Could the low collections of turnover tax be as a result of low expenditure by Zambia Revenue Authority on publicity?
2. Could the low collections of turnover tax be as a result of poor attitude towards this tax type by taxpayers in the small taxpayer population?
3. Could the poor collections of