Taxpayers Celebrate New Incentives
By Francis Maingaila ♥️
Lusaka, Zambia24 — 21-11-2025 — The Zambia Revenue Authority (ZRA) has unveiled major tax administration reforms, including the launch of the Smart Invoice Reward Management Programme and an expanded cooperative compliance framework, during the 2025 Taxpayer Appreciation Day held in Lusaka on Friday evening.
The event, centred on partnership, patriotism and progress, brought together senior government officials, taxpayers, development partners and business leaders.
ZRA used the occasion to honour taxpayers whose compliance continues to strengthen national revenue and support Zambia’s economic recovery.
ZRA Commissioner General Dingani Banda said the celebration was dedicated to acknowledging the men and women whose tax contributions drive the country’s development.
He said the event reaffirmed ZRA’s commitment to transparency, voluntary compliance and professionalism as the authority evolves into a “world-class, citizen-focused and future-ready system.”
Banda thanked development partners for their technical and financial assistance, noting that their support has improved ZRA’s operational capacity and aligned the institution with international standards.
He also praised ZRA staff for sustaining reforms under demanding conditions, calling them the driving force behind every transformation.
“To all our 6.5 million taxpayers, tonight is your night. Enjoy it. For a moment, forget the penalties and the deadlines,” he said, reaffirming ZRA’s renewed focus on domestic resource mobilisation.
ZRA Board Chairperson Careb Fundanga reported that revenue collection has grown from K58.7 billion in 2020 to K160 billion in 2025, marking a significant increase in Zambia’s ability to finance its own development.
He projected that ZRA expects to mobilise K185.4 billion in 2026, accounting for 73.1 percent of the national budget and 20 percent of GDP.
Under the 2026–2028 Medium-Term Revenue Strategy, collections are expected to grow at an average rate of 15.4 percent annually, reaching K239.8 billion by 2028.
Fundanga said these gains reflect progress towards economic ownership but warned that ambitious targets require stability and improved taxpayer compliance.
Current figures show a 49.4 percent compliance rate for filing returns and 70 percent for on-time payments.
Fundanga described these levels as “below optimal,” saying they reveal structural and operational challenges that must be addressed with innovation, empathy and precision.
He outlined several ongoing modernisation initiatives, including expanded use of data analytics, Smart Invoicing, electronic tax clearance certificates, enhanced taxpayer education and selective enforcement.
He stressed that enforcement should remain a last resort, saying the goal is to build a culture where citizens understand and appreciate the benefits of their tax contributions.
Fundanga recalled an instance involving a European diplomat who expressed pride after learning that medical equipment used during his treatment had been funded by taxpayer money.
He said Zambia should aspire to foster such a direct relationship between taxpayers and public service delivery.
He also highlighted progress on the Cooperative Compliance Framework, which promotes early engagement, transparency and mutual trust between ZRA and taxpayers.
He described it as a shift toward openness, accuracy and responsible corporate conduct, and he commended early adopters for helping reshape Zambia’s tax landscape.
A key highlight of the evening was the launch of the Smart Invoice Reward Management Programme.
The system transforms Smart Invoicing into a reward-based platform that allows taxpayers to enter raffles and win prizes, including instant rewards such as airtime and shopping vouchers.
The programme will initially be piloted in selected areas before being rolled out nationwide.
Fundanga said the reform reflects a modern, people-centred approach to strengthening compliance through engagement and national pride.
Looking ahead, Fundanga said 2026 will be a crucial planning year as ZRA begins preparing the 2027–2031 Corporate Strategy Plan. The plan will be evidence-based and aligned with national priorities and operational realities.
He added that ZRA will implement a Corporate Performance Management System to improve real-time monitoring, performance measurement and proactive decision-making.
He said key reforms would continue in customs modernisation, systems integration, border operations and intelligence-led compliance, all aimed at strengthening Zambia’s long-term revenue systems.
The event concluded with a screening of ZRA’s 2025 year-in-review video, showcasing milestones and innovations achieved during the year.
Fundanga reaffirmed the board’s commitment to accountability, innovation and efficiency, saying Zambia’s future “will increasingly depend on Zambians themselves—and tonight we honour those who make that future possible.”
Finance Minister Dr. Situmbeko Musokotwane urged ZRA to avoid enforcement actions that risk closing businesses, warning that shutting down companies undermines future revenue.
He delivered the remarks during the awards dinner held to honour outstanding taxpayers.
Dr. Musokotwane said government values compliant taxpayers because taxes form the backbone of national development.
He reminded guests that government does not generate its own income.
“Government does not create money. The money comes from you and me—the citizens,” he said.
He added that those who fail to pay taxes should not expect high-quality public services such as good roads and well-equipped hospitals.
Drawing on the Roman Empire, he explained that societies have always relied on citizens contributing resources for the common good.
The minister criticised what he described as a growing tendency to demand government services without considering how they are funded.
“People say government has not constructed a ward for us. But have we paid the taxes required to build that ward?” he asked.
He assured the audience that government will continue protecting the business environment to ensure companies remain operational.
He revealed that he and President Hakainde Hichilema have intervened in several tax-related disputes to prevent the closure of companies facing financial distress.
“When someone is in tax trouble, the solution is not to rush and close their business. If you close it, you destroy the taxes of tomorrow,” he said.
“The answer is to talk to each other and find a solution that allows payment without destroying the enterprise.”
Dr. Musokotwane called for stronger enforcement measures targeting deliberate tax evasion, saying defaulters must be held accountable in ways that do not cripple their operations.
He applauded compliant taxpayers and encouraged them to enjoy the evening, saying the ceremony was an opportunity to recognise the importance of their contributions.
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