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The Zambia Revenue Authority (ZRA) says it has recorded a sharp rise in revenue collection, growing from K58.7 billion in 2020 to K160 billion in 2025—a development that signals strengthened national capacity to finance Zambia’s own development agenda.
ZRA Board Chairperson, Dr. Caleb Fundanga, also projected that the authority would mobilise K185.4 billion in 2026, representing 73.1 percent of the national budget and 20 percent of Gross Domestic Product.
He said this during the 2025 Taxpayer Appreciation Day held in Lusaka on Friday, an event centred on partnership, patriotism and progress.
Under the 2026–2028 Medium-Term Revenue Strategy, collections are expected to grow at an average annual rate of 15.4 percent, reaching K239.8 billion by 2028.
Fundanga said the gains reflected progress toward economic ownership but cautioned that meeting ambitious targets required stability and enhanced taxpayer compliance.
“Current figures show a 49.4 percent compliance rate for filing returns and 70 percent for on-time payments,” Fundanga stated.
He highlighted ongoing modernisation initiatives to include expanded use of data analytics, Smart Invoicing, electronic tax clearance certificates, enhanced taxpayer education and selective enforcement.
Fundanga described the current compliance levels as “below optimal,” saying they reveal structural and operational challenges that must be addressed with innovation, empathy and precision.
“Enforcement should remain a last resort, saying the goal is to build a culture where citizens understand and appreciate the benefits of their tax contributions,” he said.
He recalled an instance involving a European diplomat who expressed pride after learning that medical equipment used during his treatment had been funded by taxpayer money.
Fundanga further pointed to progress on the Cooperative Compliance Framework, which promotes early engagement, transparency and trust between ZRA and taxpayers.
“Zambia should aspire to foster such a direct relationship between taxpayers and public service delivery. This is a shift toward openness, accuracy and responsible corporate conduct,” Fundanga stated.
He added that 2026 would be a crucial planning year as ZRA begins preparing the 2027–2031 Corporate Strategy Plan, which would be evidence-based and aligned with national priorities.
ZRA would also implement a Corporate Performance Management System to strengthen real-time monitoring, performance measurement and proactive decision-making.
Fundanga said key reforms would continue in customs modernisation, systems integration, border operations and intelligence-led compliance to build resilient long-term revenue systems.
Finance and National Planning Minister Dr. Situmbeko Musokotwane urged ZRA to avoid enforcement actions that risked shutting down businesses, noting that closures undermined future revenue.
“Government does not create money. The money comes from you and me—the citizens. Those who fail to pay taxes should not expect high-quality public services such as good roads and well-equipped hospitals,” Musokotwane said.
He called for stronger enforcement measures against deliberate tax evasion but stressed that interventions should not cripple businesses.
He praised compliant taxpayers and encouraged them to enjoy the evening, saying the ceremony was intended to recognise their contributions.
“People say government has not constructed a ward for us. But have we paid the taxes required to build that ward? When someone is in tax trouble, the solution is not to rush and close their business. If you close it, you destroy the taxes of tomorrow,” Musokotwane said.
ZRA Commissioner General, Dingani Banda, said the event reaffirmed the authority’s commitment to transparency, voluntary compliance and professionalism as it evolves into a “world-class, citizen-focused and future-ready system.”
“To all our 6.5 million taxpayers, tonight is your night. Enjoy it. For a moment, forget the penalties and the deadlines,” he said, reaffirming ZRA’s focus on domestic resource mobilisation.
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