COUNCILLOR SIMATAA OPPOSES ZIM MOVE TO ‘DOUBLE-TAX’ CONTENT CREATORS, SOCIAL MEDIA ADVERTISERS, AND BILLBOARDS

COUNCILLOR SIMATAA OPPOSES ZIM MOVE TO ‘DOUBLE-TAX’ CONTENT CREATORS, SOCIAL MEDIA ADVERTISERS, AND BILLBOARDS

…business is already hard as it is with loadshedding, people need less tax, not more – this move by ZIM compounds suffering, it is unjust, morally repugnant, illegal and unconstitutional.

He writes…

I’m quite shocked to learn that the Zambia Institute of Marketing (ZIM) is moving to enforce a law that compels all those selling and advertising their products and services on social media (facebook, tik-tok, instagram et al) to register with them and pay tax or face consequences by January 2026.

This means social media advertisors whether selling cakes, clothes, cassava or advertising an event or a house for rent must comply with ZIM Law or face stiff penalties – which we assume includes fines, imprisonment or both; if they do not comply.

Firstly, business is already hard as it is with loadshedding: people need less tax, not more. This move by ZIM compounds suffering, it is unjust, morally repugnant, illegal and unconstitutional: to begin with ZIM is only a regulatory authority (created by and for its qualified and subscribed members) not a taxing authority for all things to do with advertising off and online.

By law only ZRA has the mandate to tax citizens, and in any case, social media advertisers are already being taxed by ZRA at 17% for placing a facebook ad.

Secondly, ZIM’s proposed tax violates 2 canonical principles of taxation: it’s not justified and it subjects its target content creators to double-taxation – all social media users pay indirect taxes to ZRA because our bundles are NOT FREE! They are taxed and absorbed in the cost of bundles which expire!

Finally, ZIM is also encroaching on all Local Authorities: its move to even try to regulate or tax billboard placement is ultra-vires: that mandate by law exclusively belongs to the Local Authorities because the ground on which they are mounted is the only source of revenue to the Council.

If ZIM cannot survive and sustain its operations on contributions from its membership, let them form a cooperative and apply for CDF, not this over-reach they are exhibiting that disturbs small businesses and usurps the authority of Councils and ZRA.