ZRA and RTSA tighten rope on car importers dodging tax

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The Zambia Revenue Authority (ZRA) and the Road Transport Safety Agency (RTSA) have tightened the rope on tax dodgers importing cars without paying Advance Income Tax (AIT) through the use of other people’s TPIN (Tax Payer Identification Number).

“As part of the rapid measures to curb tax evasion that is hurting our economy though tax crimes, RTSA will only allow the registration of vehicles only in the TPIN that was used at importation except for the official registered car dealers with clean tax accounts,” reads a joint statement issued by RTSA head public relations Fredrick Mubanga and ZRA corporate communications manager Topsy Sikalinda.

This means that if a vehicle is imported under the name and Tpin e.g John Banda, it can only be registered under the same Name and TPIN with RTSA.

Further steps have been taken to curb abuse of rebates under duty free for persons with disabilities hence Red books are to be issued on these motor vehicle instead of white books.

ZRA commissioner general Kingsley Chanda says: “This is part of our continued Joint operations that are meant to address tax evasion in the importation of motor vehicles. It’s about tackling illicit trade in all of its expressions and already our collaboration is bearing fruit.”

And RTSA CEO Zindaba Soko says: “The Agency will not allow tax evaders who are using other people’s TPIN Numbers at importation for the sole purpose of avoiding to pay Advance Income Tax to change names at registration.”

He further said “this is undermining the tax laws hence negatively affecting the overall government revenue base which is critical for the country and the Zambian people”

The new measures are with immediate effect and all stakeholders including Interpol have been notified about the changes.

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Start: 2019-07-01 End: 2019-07-31