LUSAKA, March 19 (Xinhua) -- The Zambian government launched an innovative tax system on Tuesday that will modernize tax administration and increase revenue collection.
The Smart Tax Invoice system, which will be managed by the country's revenue agency, the Zambia Revenue Authority, is an electronic invoicing system that aims to digitize the invoicing process by replacing traditional paper-based invoices with electronic ones that will be transmitted to the revenue agency in real time.
"By leveraging cutting-edge technology, the smart invoicing system will turn around the performance of value-added tax and other transactional tax types while minimizing compliance costs for taxpayers," Minister of Finance and National Planning Situmbeko Musokotwane said during the launch.
He said Zambia has faced challenges in the administration of value-added tax, resulting in negative annual collections and marred by rampant fraud, adding that he expects the revenue agency to close the revenue shortfall.
The system will facilitate real-time reporting and monitoring of transactions and enable the revenue agency to identify discrepancies and potential instances of tax evasion promptly, he added.
According to him, the smart invoicing system was forged through South-South cooperation between Zambia and Rwanda through a memorandum of understanding signed in 2022.
He noted that taxes are the government's main source of revenue and are essential for the government to provide essential public services, adding that the government has been continuously improving tax administration to increase tax revenues.
