the jesuit centre for theological reflection (jctr) says the next government should broaden the tax base to avoid high taxes being experienced the 500, 000 fully employed zambians..
according to the information obtained from jctr ,the 500, 000 fully employed formal sector workers are this year expected to pay over 3trillion kwacha in pay as you earn as compared with the mining sector which is expected to pay over 1.8trillion kwacha in form of taxes.
jctr also says companies in the country are expected to pay over 1.3trillion kwacha by the end of the year.
the organisation further says while maximizing tax revenue is the primary concern, income inequality caused by the high tax burden on the few people in formal employment is of great concern.
jctr has since stated that the high income inequality in the country can be attributed to poor implementation of wealth taxes which do not only contribute to tax revenue but also help in bridging the gap between the rich and the poor.
jctr has observed that increasing the tax revenue from wealth transaction can increase the tax base and allow government to reduce the highly unequal burden on the formally employed, which is unfair and creates economic distortions.
it has further called for the development of an effective and efficient tax enforcement and compliance strategy to have a good and stable structure that has heavy reliance on consumption taxes like domestic value added taxes and local exercise duties among others.
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