ZRA PROMOTES TRUST-BASED TAX COMPLIANCE

The Zambia Revenue Authority (ZRA) in partnership with the International Tax and Investment Center is hosting a Cooperative Compliance Conference focused on implementing trust-based initiatives to improve trade facilitation and tax compliance in the country.

This initiative aligns with the standards set by the World Customs Organization and emphasizes the importance of trust between the tax authority and taxpayers, requiring high ethical standards from all participants.

ZRA Commissioner General Dingani Banda highlighted that Zambia’s tax-to-GDP ratio has averaged 18.3% over the past five years, exceeding the continental average of 15%. This achievement improves the necessity for reforms that encourage voluntary compliance, such as the forthcoming Cooperative Compliance Initiative.

He emphasized that developing a technologically efficient and data-driven tax system is essential for the success of these initiatives as recent investments in advanced safety systems aim to enhance efficiency and service delivery for taxpayers.

He further noted that the new operating model introduced in 2024 positions ZRA as a leader in compliance programs, reflecting a commitment to fostering collaborative relationships with taxpayers.

International Tax Investment Center (ITIC) President Daniel Witt, added the need to shift from a confrontational approach to a partnership model, especially for multinational companies, establishing a competitive, predictable, and stable tax regime.

He observed that taxpayers want a stable, transparent, and honest tax administration, not that there is a complete alignment on what both the taxpayer and tax administration want and need.

The conference, which began on 25th August, 2025 is scheduled to conclude today. It has seen participation from different African authorities such as Kenya, Mozambique, South Africa, Tanzania, and Zambia.