Zambia Revenue Authority increases value added tax refunds to K2.5 billion following new reforms

The Zambia Revenue Authority (ZRA) has increased Value Added Tax (VAT) monthly refunds to between K2 billion and K2.5 billion from February 2025 as part of its tax reforms for the year.

Commissioner-General, Dingani Banda, announced the increase during the Zambia Association of Manufacturers (ZAM) Tax Awareness Workshop at Taj Pamodzi Hotel in Lusaka on Wednesday.

Banda highlighted that VAT refunds had previously risen from K800 million to K1.35 billion in 2021 and from K1.35 billion to K1.7 billion in September 2024.

The latest adjustment aims to restore the credibility of the VAT system by ensuring timely refunds, which he said would improve compliance.

“This increase will leverage the smart invoice system going forward, enhancing transparency and reducing refund fraud,” Banda explained.

He described the smart invoice system as a transformative tool designed to ensure accurate transaction reporting for VAT and other tax types.

The system would also expand the tax base by using compliance analytics to detect discrepancies.

Additionally, Banda noted the expansion of a data-driven approach to tax administration, using data analytics, compliance risk management, and artificial intelligence to enhance efficiency.

“These reforms require strong partnerships with stakeholders and an effective feedback mechanism for continuous improvement,” Banda said.

He urged the manufacturing sector to stay informed about tax matters, embrace voluntary compliance, and actively provide feedback to ensure the reforms’ success.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.