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Friday / March 29.
HomeTechCouncils to introduce direct payment for market levies to boost collections

Councils to introduce direct payment for market levies to boost collections

Local Government Minister Vincent Mwale has disclosed that government is introducing ICT systems that will enable marketers pay money directly into the council account through a phone (mobile money) or bank card to avoid collection of hard cash by unscrupulous people which ends up depriving the council the much needed revenue

In an exclusive interview with the Zambian Business Times – ZBT, Mwale revealed that apart from direct payment of levies through mobile phones and bank cards, the government t has made progress towards the re-construction of city market and finding the possible financier for an initial estimation by a task force team of about US$90 million project.

The reconstructed and expanded city market market will consist of 14,000 trading spaces and will involve demolition of Munyuale market and old City market to create space for the new modern market, adding that designs have already made and engineers are ready to start the works once the financier approves.

He disclosed that delays towards the re-construction of the market are due to financing challenges as the monies contributed after the gutting of the market only amounted to K 1.7 million hence government has been finding possible ways to engage a financier for the project.

He added that the K1.7 million was however contributed to the construction of Simon Mwewa market, a K70 million project which will also benefit victims of City market and those on the streets.

“We know it’s been two years now since city market got gutted and we have been looking for money all these years because this disaster is costing us a lot of money and we had a mining company that offered to build the market but because of the changes in the tax regime involving mining taxes, they withdrew their offer hence we hard to go back to square one and start looking for other financiers, fortunately we have one possible financier who is promising and once we conclude with the engagement, works will definitely start,” he said.

Meanwhile, the minister has warned the council police officers to stop treating vendors in an in-human manner saying there are have been reports that some officers are taking advantage of the situation by grabbing goods from vendors. He said government will find ways of creating a space for vendors and that those found disputing against the guidance given will face the law.

The local government system as it stands today needs tangible reforms in order to be of service to its residents. Most of the revenue collection in Zambia is centralized and the collection of monies by local authorities remains a challenge. Services such as business levies, taxi operations and ground rates which would provide a financial base for the councils remain uncollected due to sensitives and sometimes lack of innovation on the part of council management.