Getting to Know the Zambia Revenue Authority (ZRA)
Introduction
The Zambia Revenue Authority (ZRA) is the government agency responsible for assessing, collecting, and administering taxes and facilitating trade in Zambia. With the motto "My Tax, Your Tax, Our Destiny", ZRA plays a pivotal role in funding public services, infrastructure, and national development by mobilizing domestic revenue. Established as a semi-autonomous body, it operates independently to ensure efficient and transparent revenue collection.
History and Establishment
ZRA was established on April 1, 1994, under the Zambia Revenue Authority Act (Chapter 321 of the Laws of Zambia). It was created as part of broader tax reforms in the early 1990s to address declining government revenues and improve administration efficiency. The former Departments of Income Tax and Customs and Excise from the Ministry of Finance were merged into this new semi-autonomous agency.
Zambia was the second African country (after Uganda) to adopt this revenue authority model. Initial support came from international partners, including the UK's Department for International Development (DFID), which helped operationalize the organization. Over the years, ZRA has undergone modernization reforms, including functional reorganization in the mid-2000s based on IMF recommendations.
Mandate and Functions
ZRA's core mission is to optimize and sustain revenue collection and administration for a prosperous Zambia. Its key functions include:
Assessing and collecting domestic taxes (e.g., Income Tax, VAT, PAYE, Withholding Tax).
Administering customs duties and facilitating international trade.
Enforcing tax laws and promoting voluntary compliance.
Advising the government on tax policy matters.
Educating taxpayers and providing quality services to enhance compliance.
ZRA administers major taxes such as Value-Added Tax (VAT), Customs and Excise Duties, and Income Tax, contributing significantly to Zambia's national budget.
Organizational Structure and Leadership
ZRA is governed by a Governing Board appointed by the Minister of Finance, which includes representatives from key stakeholders like the Bank of Zambia, professional bodies, and industry associations. The board oversees strategy and administration.
The Commissioner General, appointed by the President, serves as the chief executive. As of December 2025, Dingani Banda holds this position, leading efforts in modernization and international collaboration.
The organization is structured into divisions such as Domestic Taxes, Customs Services, and Corporate Services, with offices segmented by taxpayer size (large, medium, small).
Taxpayer Services and Digital Transformation
ZRA emphasizes taxpayer-friendly services through education, assistance, and digital tools:
Online Portal (TaxOnline): Allows registration for Taxpayer Identification Number (TPIN), filing returns, payments, and accessing services.
TaxOnApp: A mobile app for registration, filing nil returns, payments, and motor vehicle duty calculations.
Smart Invoice System: Rolled out successfully, leading to the suspension of Withholding VAT (WVAT) effective August 1, 2025.
Customer Service: Includes live chat, taxpayer charters, tutorials, and physical help desks.
ZRA also operates a Taxpayer Appreciation Day and reward programs to encourage compliance.
Recent Developments (as of December 2025)
In 2025, ZRA has focused on digitalization and efficiency:
Over 27,000 taxpayers registered on Smart Invoice, processing billions in invoices.
Suspension of Withholding VAT to reduce compliance burdens.
Launch of Smart Invoice Reward Programme and expanded cooperative compliance.
Revenue growth from K58.7 billion in 2020 to K160 billion in 2025.
Targets for 2026: K185 billion in collections.
International collaborations, such as MOUs with other African revenue authorities.
ZRA continues to modernize customs, integrate systems, and use data analytics for better enforcement.