ActionAid Zambia urges govt to address challenges identified with Smart Invoicing System


ActionAid Zambia (AAZ) has called on the government to urgently engage the business community on the challenges faced with the Smart Invoicing System.

Faides Tambatamba, the organization’s Country Director, said that while the Smart Invoicing system introduced by the Zambia Revenue Authority (ZRA) was welcomed as a progressive step to digitalise and seal significant tax leakages among small and large businesses in Zambia, it had brought challenges that needed urgent redress.

In a statement issued in Lusaka on Tuesday, Tambatamba noted that there was a general feeling among small to medium-sized enterprises (SMEs) that the system was expensive and increases the heavy burden of licenses, fees and taxes, especially in the current economic situation.

She also expressed concerns that electricity load shedding and the high cost of doing business have equally impacted SMEs’ ability to actively use the Smart Invoicing system.

Read More: ZRA grants September 30 grace period for VAT registered taxpayers to integrate into smart invoice system

Tambatamba said the system should be responsive to these challenges.

“While recognising that these changes are costly and will take time, there is a need for a phased approach to allow for the adoption of new software and technology, improved access to electricity and increased capacity among local SMEs,” she stated.

She reiterated ActionAid Zambia’s call for fair and progressive tax measures in the country in the quest for increased domestic resource mobilization.

Tambatamba stressed that the government should not ignore the challenges observed by players in various sectors of the economy regarding the system.

“ActionAid supports the effective collection of taxes and ensuring the prudent utilization of resources to end poverty,” Tambatamba concluded.

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