Zambia Revenue Authority aims at 20 percent to contribution to GDP

CHALI MULENGA

Livingstone

THE Zambia Revenue Authority says it aims to contribute about 20 percent to the country’s Gross Domestic Product (GDP), but unforeseen events such as global economic shocks, pandemics and climate-related challenges continue to affect revenue collection.

ZRA acting Director for Executive Support Laban Simbeye said while the authority has made progress in domestic revenue mobilisation, external factors can disrupt even well-planned targets.

“Unforeseen circumstances such as the COVID-19 pandemic, recurring droughts and global economic instability sometimes impact our projections. Yet we remain committed to optimising revenue collection and widening the tax net,” Mr Simbeye said.

He noted that Zambia’s tax-to-GDP ratio currently stands at about 20 percent, above the 15 percent benchmark recommended for sustainable development, but still below levels achieved by higher-performing economies.

Mr Simbeye said the authority has extended its Corporate Strategic Plan (CSP) to run from 2022 to 2026 to align with Government priorities. The plan focuses on four key areas: enhancing tax and customs compliance, improving taxpayer experience, strengthening business process efficiency and developing a competent workforce.

“Our core mandate is to increase revenue while ensuring all eligible taxpayers are included in the system. Tax and customs compliance is ZRA’s number one function,” he said.

He said ZRA has invested heavily in technology and internal capacity over the past five years, developing digital platforms such as Tax Online and Smart Invoicing. The authority has also customised the Automated System for Customs Data (ASYCUDA) to meet Zambia’s specific needs, improving trade facilitation, data integrity and monitoring of exports, including mineral products.

The One Stop Border Post at Kazungula, Mr Simbeye said, demonstrates efforts to streamline cross-border trade and reduce operational delays, which is critical for a country heavily dependent on mining exports.

Mining remains a key driver of Zambia’s economy and a major source of ZRA revenue. Taxes from mining, including mining income tax, mineral royalties and export duties, contribute significantly to national coffers.

“Zambia’s economic development has historically been anchored on mining. The rail lines, roads and infrastructure that shaped our country were built around this sector more than 100 years ago, and it continues to drive growth today,” he said.

Mr Simbeye added that ZRA closely monitors mining-related tax contributions to ensure compliance and minimise revenue leakages.

He said ZRA’s contribution to Government expenditure has risen from about 55 percent in 2020 to over 71 percent last year, reducing reliance on domestic and foreign borrowing. The authority aims to finance up to 90 percent of Government spending in the medium term.

ZRA’s success has also attracted attention from other countries. Delegations from nations such as Liberia have visited Zambia to learn from the authority’s systems, particularly in tax compliance, digital innovation and trade facilitation.

“ZRA’s achievements are measured not only in revenue figures but also in building institutional capacity, improving taxpayer experience and contributing to national development,” Mr Simbeye said.