Preview

Impact of Publicity on Collection of Turnover Tax

Good Essays
Open Document
Open Document
765 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
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

You May Also Find These Documents Helpful

  • Good Essays

    Foreign Aid In Africa

    • 664 Words
    • 3 Pages

    According to Moyo, foreign aid affects an African country’s ability to collect tax revenue because it imposes a certain negative mentality on African policymakers. Many leaders lack concern or feel the urgency “in remedying Africa’s critical woes” (Moyo, 2009, 66) because they believe foreign aid provides them with a permanent income. So, they see no point in developing “other, better ways of financing their country’s long term development” (Moyo, 2009, 66). Since the countries have a huge dependency on foreign aid, they also have a lack of need to seek tax revenues. It might appear that less taxation is a great aspect in society, but in fact, it is a detrimental aspect that strongly affects their ability to prosper. Without taxation, it deteriorates natural checks and balances involving the government and people. As Moyo puts it, “a person who is levied will almost certainly ensure that they are getting something for their taxes” (Moyo, 2009, 66). Clearly, foreign aid does not do anything other than cause African countries to be stuck in the endless cycle “that chokes off desperately needed investment, instils a culture of dependency, and facilitates rampant and systematic corruption” (Moyo, 2009,…

    • 664 Words
    • 3 Pages
    Good Essays
  • Good Essays

    There are also certain sectors which think that if the micro enterprise will result to a net loss, since the 8% flat rate is based on gross income, the salaried employee is better off with an exemption of P250, 000. But I should say that goes with the risk of doing business – one cannot have it…

    • 730 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Tax Evasion

    • 2142 Words
    • 9 Pages

    Tax evasion, the illegal negligence in taxpaying and misrepresentation of tax returns to reduce one’s tax liabilities, is at a low level in Singapore. With Singapore’s strong tax enforcement, Singaporeans fear state punishment, deterring them from evading taxes. However Singaporeans’ fear of state punishment is insufficient to explain Singapore having little tax evasion. In an empirical study by Alm and Jackson (1992), higher levels of state punishment were found to have relatively insignificant effects on tax compliance. There is instead another explanation for Singapore’s low tax evasion, and that is Singaporeans’ satisfaction with the state’s performance. When the state performs well, Singaporeans become more optimistic about taxpaying and voluntarily comply, leading to higher levels of compliance.…

    • 2142 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Economics Changing Trends

    • 4433 Words
    • 18 Pages

    A fall in the share of indirect tax collections from about 80 per cent of total tax revenue in eighties to about 70 per cent in the nineties couldnot be fully compensated by the increase in direct tax revenue.…

    • 4433 Words
    • 18 Pages
    Better Essays
  • Powerful Essays

    One would not expect leaders in a democratic society like Zambia to embezzle funds meant for the welfare and development of their communities. According to Acemoglu and Robinson, this kind of behaviour by leaders is only possible in autocratic regimes. They argue that democracy makes this kind of theft difficult to accomplish and to conceal for two reasons. Firstly, the formal institutions of government such as the legislature constrain the behaviour of leaders. Secondly, popular participation in the process of government ensures that elected leaders are accountable to the citizenry. In a truly democratic society, there will be honesty, fairness, responsibility and accountability to and for each other (Djokoto and Chama: 2006).…

    • 2223 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Pattern of Revenue

    • 423 Words
    • 2 Pages

    Looking at the share of tax revenue and non-taxrevenue of the centre, it is found that the main source ofrevenue of the central government is tax revenue whichremained 70 to 80 per cent of the total revenue receiptsthroughout the study period (Graph 5.4). This is mainly dueto indirect taxes which occupy a dominant place in centralfinances. The table clearly shows that there has been arapid increase in the tax revenue of the central governmentfrom Rs. 6009.77 crore in 1975-76 to Rs. 38403.99 crore in1989-90 which recorded the growth of 15 per cent duringpre-reform period (Table 5.4 and Table 5.5). Firstly, it wasdue to higher collections from union excise duties, customduty and corporation tax (Economic Survey, 1983-84; Report on Currency and Finance, 1984-85). Secondly, it wasdue to improvement in the share of direct taxes…

    • 423 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Fiscal Deficit in Zimbabwe

    • 1119 Words
    • 5 Pages

    Zimbabwe, once a vibrant and diversified economy and hope for Africa's future, was on the verge of collapse had it not been for the introduction of the multi-currency system after the formation of the inclusive government. It has had a perpetual fiscal deficit post 1990 accompanied by high inflation, negative economic growth, high unemployment and a reduction in the standard of living as measured by the per capita income basis until the dollarization in February 2009. Dollarization has seen a steady growth in the economy including an improved fiscal deficit backed by improved tax remittances especially from corporates.…

    • 1119 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    BC 405 Business Taxation

    • 608 Words
    • 6 Pages

    Q. No.2 what are the different types of perquisites enjoyed by the salaried individuals? Discuss.…

    • 608 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    POL 1015 ASSGN ONE

    • 1897 Words
    • 6 Pages

    An election is a decision making process where people elect or chose people to hold official offices. This is the usual mechanism by which modern democracy fills offices in the legislature and sometimes in the executive and judiciary, and in a regional and local government. The thesis that elections are used to measure democracy will provide a baseline for this discussion. It will begin by defining the key concepts, discuss elections as a measure of democracy with examples, in particular of African countries which recently had elections including Zambia and thereafter provide an answer as to whether elections are a sufficient measure of democracy.…

    • 1897 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Administrative Law Notes

    • 44046 Words
    • 177 Pages

    ∗This material has been prepared by John P. Sangwa and was initially part of a larger study undertaken by the author. The material is meant for students studying L341. The reproduction for any purpose whatsoever of this work or any part thereof in any form or manner is not allowed without the permission of the author.…

    • 44046 Words
    • 177 Pages
    Powerful Essays
  • Good Essays

    Tax assignment

    • 1919 Words
    • 10 Pages

    Inland Revenue Department, (2011). Briefing for the Incoming Minister of Revenue 2011. Wellington, New Zealand.…

    • 1919 Words
    • 10 Pages
    Good Essays
  • Good Essays

    In this respect, tax and duty payers have always attempted to evade payments on their tax liabilities, resorting to various tactics, as they view such compulsory payments as detrimental to their wealth and income. The national revenue service, as the state's agency specialized in controlling the revenues of legal and natural persons and collecting taxes, tends to interpret legal provisions in such a way as to support its own purposes. Nevertheless, no matter how clever the tax policy makers may be, laws may also be construed to the taxpayer's own advantage. When this is not possible, the taxpayer will resort to unlawful actions to avoid paying taxes, excises or duties. Thus emerges one of the most widely spread phenomena affecting business activity, i.e. tax evasion. (Iaţco, Vorniceanu, Brezuleanu, Sandu,…

    • 723 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Ministry of Finance and National Planning (MoFNP) 2010, Zambia: Population and National Development, Ministry of Finance and National Planning, Lusaka, Zambia…

    • 1492 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Tax Compliance

    • 4781 Words
    • 20 Pages

    In Bangladesh this kind of contractual relationship has not yet been established. Actually respectful treatment from the tax authority and incentives plays critical role in creating a psychological effect on the taxpayer mind. And it is the duty of the government to make proper utilize of the tax money. If the taxpayer realized that their earnings going out by the form of tax is properly used then the economic theory does not work in some places.…

    • 4781 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    Tax Administrations in developing country contend with the same range of challenges with developed nations, although the significance of typical collection issues may be greater. As a result these countries suffer significant losses in revenue collection. Introducing tax initiatives such as self-assessment and GST does alleviate the revenue leakages to certain extent, however the agencies capacity and capability to administer an effective and efficient taxation system is the ultimate determinant to maximizing collections.…

    • 848 Words
    • 4 Pages
    Good Essays