The Zambia Revenue Authority (ZRA), in partnership with the International Trade and Investment Center (ITIC), is hosting a Cooperative Compliance Conference aimed at promoting trust-based initiatives to improve trade facilitation and tax compliance in Zambia. The conference, which began on 25th August 2025 and concludes today, brings together tax authorities from Kenya, Mozambique, South Africa, Tanzania, and Zambia.
The initiative focuses primarily on inland taxes and aligns with standards set by the World Customs Organization. It emphasizes the importance of trust between taxpayers and the tax authority, requiring high ethical standards from all participants. Under the Cooperative Compliance model, taxpayers benefit from privileges such as fewer audits and exemption from penalties when voluntarily disclosing anomalies.
ZRA Commissioner General Dingani Banda highlighted that Zambia’s tax-to-GDP ratio has averaged 18.3% over the past five years, surpassing the continental average of 15%. He stressed that this performance underscores the need for reforms that encourage voluntary compliance, such as the Cooperative Compliance Initiative.
Commissioner General Banda also emphasized the importance of a technologically efficient, data-driven tax system to support these reforms. Recent investments in advanced safety and operational systems aim to enhance efficiency and improve service delivery to taxpayers. He noted that the new operating model introduced in 2024 positions ZRA as a regional leader in compliance programs, reflecting its commitment to fostering collaborative relationships with taxpayers.
ITIC President Daniel Witt highlighted the need for a shift from confrontational approaches to partnership models, particularly for multinational companies. He explained that a competitive, predictable, and stable tax regime is essential, and taxpayers increasingly seek a transparent and reliable tax administration. Witt noted that the focus is not complete alignment but creating conditions where both taxpayers and tax authorities can effectively meet their obligations.
The Cooperative Compliance Conference provides a platform for knowledge sharing and discussion on implementing trust-based compliance programs. By fostering collaboration and transparency, Zambia aims to strengthen voluntary compliance, enhance trade facilitation, and ensure a stable tax environment that supports economic growth.