Artisan's Knowledge of taxation issues in selected markets of Lusaka

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Nyambe, Silumesi Sam
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This research study is aimed at identifying adult education processes that can be used to enhance the self-employed artisans’ understanding of Zambia’s taxation issues in selected markets of Lusaka. Six artisan markets out of the targeted fifteen were purposively selected after a conducted mapping exercise during the months of October to November, 2009. The selection was done on account of the market’s business viability. These markets where the study took place are: Alick Nkhata in Kalingalinga, Buseko in Matero, Chifundo in Chaisa, Katima-mulilo in Garden, Kwacha in Chilulu and Tiyeseko in Marrapodi. The general objective of the study was: to determine the artisan marketeers’ knowledge that can be used to enhance their understanding of Zambia’s taxation issues. Three specific objectives were focused on, namely: to determine the artisan marketeers’ knowledge about taxation issues, to assess the artisan marketeers’ attitude towards tax-compliance and to explore adult education processes that can be used to enhance artisan marketeers’ knowledge about taxation issues.The descriptive research design was used in this study to systematically describe the facts and characteristics held by artisan marketeers over taxation issues affecting them. The population for this study was 168 artisan marketeers. Out of this population, 138 artisan marketeers were selected using proportionate random sampling procedure. Four key informants, namely: one from the Zambia Revenue Authority (ZRA) Head Office and three from the Market Management Committee (MMCs) members were also purposively selected.The research instruments and data collection techniques involved: structured closed-ended questionnaires which were survey (face-to-face) administered to artisan marketeers, whereas unstructured interviews were conducted with key informants from both ZRA and the MMCs. Data analysis used frequencies and percentages to present data collected using survey questionnaires whereas, data from the unstructured interviews were classified in narrative form.The study revealed that there was a dearth of knowledge on a number of issues with regard to taxation as the majority of artisan marketeers lacked adequate information on how to register as eligible taxpayers with ZRA. For instance on knowledge of registration procedures for new taxpayers, the study revealed that out of 138 artisan marketeers, the majority 134 or 97% lacked knowledge about the registration procedure. This was because they did not know that they needed to notify the Commissioner-General (CG) at ZRA within thirty days of business commencement in order to be allocated a Tax Payer’s Index Number (TPIN). On knowledge of the main type of tax applicable to them, the study showed that out of 138 artisan marketeers, the majority 136 or 99% were unable to identify income tax as the main one applicable to them. Finally, on knowledge of the recommended minimum amount for tax exclusion, the study revealed that out of 138 respondents, the majority 136 or 99% lacked knowledge regarding the threshold for eligibility to paying income tax; which was up to K200 000 000 per annum, In conclusion, the study revealed that artisan marketeers lacked knowledge about Zambia’s taxation issues that are applicable to them. The following recommendations aimed at strengthening the artisan marketeers’ knowledge were arrived at:Members of the community within which the artisans operate from should be engaged as trainers of their colleagues by the Zambia Revenue Authority. This will address the challenges Zambia Revenue Authority officers encountered in creating rapport with artisan marketeers when discussing taxation issues;Zambia Revenue Authority should include record keeping techniques such as booking-keeping in tax education programmes for artisan marketeers. This will enable artisan marketeers to successfully compile and submit records their business incomes in order that the tax office can assess what has to be paid each year;The delivery methods used by the Zambia Revenue Authority should include face-to-face interaction with learners as it enables them to ask questions for clarity; instead of the current method of distributing pamphlets only.
Artists-Taxation-law and legislation-Zambia , Entertainers-Taxation