TAX is an essential part of revenue collection for the Zambian government, as is the case with many other governments across the globe. … Every government needs taxes to be able to provide various services to its citizens. It is through taxes that Government raises revenue to finance infrastructure and social services.
Why is it important for citizens to pay their taxes?
The money you pay in taxes goes to many places. In addition to paying the salaries of government workers, your tax dollars also help to support common resources, such as police and firefighters. Tax money helps to ensure the roads you travel on are safe and well-maintained. Taxes fund public libraries and parks.
Why must citizens pay taxes and how are taxes used?
All citizens must pay taxes, and by doing so, contribute their fair share to the health of the government and national economy. The federal taxes you pay are used by the government to invest in technology and education, and to provide goods and services for the benefit of the American people.
Who should pay tax in Zambia?
All individuals are liable to tax on personal income after deducting personal relief at a graduated rate from 0 percent for incomes of K39600 per Annum (K3300 per month) and below. The rest at rates of 25 percent, 30 percent and 37.5 percent.
Why are taxes so necessary?
To pay for the things people need, things that no one person can provide, taxes are levied so everyone can contribute something for the greater good. Taxes help provide infrastructure such as roads, bridges and legal tender, and public services such as police, hospitals and schools.
What are the benefits of paying the right taxes?
Paying the right amount of tax provides good credit rating to financial institutions and agencies. The higher the income and tax you declare, the higher the credit rating. You can use your good credit rating when getting a loan for additional funds for the expansion of your business or other purposes.
What would happen if there were no taxes?
With no taxes to support this kind of expenditure, maintaining an army for border security and national defense will not be possible. Eventually, when the government will start to fail in providing and maintaining decent roads, power, water, defense facilities, many businesses will start to flee.
What services are paid for by taxes?
Your taxes pay for a variety of government services, as well as government debt and salaries.
…
- Government Debt. …
- Social Security. …
- Medicare. …
- Other Health Care. …
- National Defense. …
- Veterans Benefits. …
- Income Security or Safety Net Programs. …
- Education.
What are the most important taxes?
As shown in figure 1 above, income taxes are the largest tax base in the United States. Income taxes (including taxes on individual and corporate income; and for the federal government, deductions from payrolls for social insurance and retirement) are a major source of revenue for federal, state and local governments.
What are the 3 main types of income taxes?
Discover the three basic tax types—taxes on what you earn, taxes on what you buy, and taxes on what you own.
Is PAYE refundable in Zambia?
PAYAs- YouEarn (PAYE) can only be refunded if there is a genuine mistake in the tax computation by the employer resulting in the employee being overtaxed, says the Zambia Revenue Authority (ZRA). … “The claim is only done on income accrued in the final year of employment,” Mr Sikalinda said.
How much is income tax in Zambia?
| Zambia Taxes | Last | Unit |
|---|---|---|
| Personal Income Tax Rate | 37.50 | percent |
| Sales Tax Rate | 16.00 | percent |
| Social Security Rate | 10.00 | percent |
| Social Security Rate For Companies | 5.00 | percent |
What percentage is pay as you earn in Zambia?
Pay As You Earn (PAYE)
The Income Tax Act provides for payment of employees’ income tax through what is known as PAYE. The current tax bands provide for a top rate of 37.5%.
Can the government tax itself?
Exemption of government agencies – government immunity from tax. This is a self-imposed practical limitation that the government does not tax itself. The government exercising governmental/sovereign functions is not taxed. But when the government agency exercises proprietary function, taxation is the rule.
How does tax help the economy?
Taxation not only pays for public goods and services; it is also a key ingredient in the social contract between citizens and the economy. … Holding governments accountable encourages the effective administration of tax revenues and, more widely, good public financial management.
What are the stages of taxation?
The levying of taxes can be divided into three successive phases: (1) assessment, or the definition of the exact amount subject to taxation under the statute; (2) computation or calculation; and (3) enforcement.