Zambia: ZRA advocates compliance through trust-based approach

The ZRA hosted a cooperative compliance conference from 25 to 27 August to promote trust-based initiatives for improved trade facilitation and tax compliance.

The Zambia Revenue Authority (ZRA) announced on 27 August 2025 that it is hosting a Cooperative Compliance Conference in partnership with the International Tax and Investment Centre, aimed at implementing trust-based initiatives to enhance trade facilitation and tax compliance in the country.

This initiative aligns with the standards set by the World Customs Organisation. It emphasises 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 emphasised 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 programmes, reflecting a commitment to fostering collaborative relationships with taxpayers.

International Tax Investment Centre (ITIC) President Daniel Witt emphasised the need to shift from a confrontational approach to a partnership model, particularly for multinational companies, to establish a competitive, predictable, and stable tax regime. He noted that taxpayers seek a stable, transparent, and trustworthy tax administration, though complete alignment between taxpayers’ expectations and the administration’s priorities has yet to be achieved.

The conference, held between 25-27 August 2025, has seen participation from different African authorities such as Kenya, Mozambique, South Africa, Tanzania, and Zambia.