Techbytes: ZRA turns to AI, research to strengthen tax administration

The Zambia Revenue Authority (ZRA) is stepping up its use of artificial intelligence (AI) and data-driven research to improve tax administration, following a new partnership with the International Centre for Tax and Development (ICTD).

The two institutions on Thursday signed a Memorandum of Understanding (MoU) and a Non-Disclosure Agreement (NDA) aimed at strengthening evidence-based tax administration through research, digital innovation and the use of advanced technologies.

Speaking during the signing ceremony in Lusaka at the ZRA Head office, ZRA Commissioner-General, Dingani Banda, said the Authority was moving away from relying solely on conventional methods by using data and analytical tools to guide tax policy and administration.

“We recognize that in an increasingly complex and digital world, effective tax administration can no longer rely solely on intuition or traditional approaches. Instead, we must ground our decisions, investments and reforms in robust evidence and analytical insights,” Banda said.

He revealed that ZRA had already established an Artificial Intelligence Unit and introduced several digital solutions, including an AI-powered chatbot, an HS Code search engine and a taxpayer nudging system that automates targeted communication with taxpayers.

Banda said the Authority’s Secure Data Lab, established with support from the United Nations University World Institute for Development Economics Research (UNU-WIDER), had positioned Zambia among Africa’s leaders in data-driven tax administration.

“The Data Lab places Zambia at the frontier of continental tax administration. It operates as one of only three specialised, on-site revenue data facilities in Africa,” he said.

Banda said the agreement with ICTD would enable ZRA to convert large volumes of transactional data into practical policy insights through joint research and analysis.

He said the partnership was expected to strengthen evidence-based decision-making, enhance research capacity, develop digital solutions and facilitate knowledge sharing through training and collaboration.

The two institutions also plan to undertake joint research on tax administration challenges, develop technology-based solutions and participate in regional and international platforms to share best practices.

Banda said the initiative supported ZRA’s Corporate Strategic Plan and aligns with Government’s broader objective of using technology to improve public service delivery.

“Together, we have an opportunity to build knowledge, drive innovation and shape the future of tax administration through evidence-based reforms. I am confident that this partnership will produce lasting value for our institutions, our stakeholders and the people we ultimately serve,” he said.

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.