Chisanga lauds implementation of Smart Invoice system

Lusaka based economist, Kelvin Chisanga, says the mandatory introduction of the Zambia Revenue Authority (ZRA) Smart Invoice system earlier this year represents a major shift in the country’s tax administration strategy.

As Zambia grapples with the need to broaden its tax basket, Chisanga said in a statement on Tuesday that this tax model of Information and Communication Technology(ICT)-enabled system would help to reduce dependence on external financing.

“Innovations such as this, does not only come timely but makes up as a key and very essential factor to tax administration systems,” he said.

Chisanga stated that: “The system’s ability to capture real-time transactions directly from businesses, has since already begun to bear substantial effects where live show gives tax predictability of expected revenue.”

He claimed that early data from consumptive tax areas clearly indicated an encouraging 15–25 percent rise in VAT collections, saying this was a strong signal that automation and digital oversight can effectively plug leakages that have historically plagued the Value Added Tax (VAT) system.

From an economic standpoint, Chisanga argued that Smart Invoice reduced the scope for under-declaration and invoice fraud, these two being the most major contributors to Zambia’s tax compliance gap.

“It also encourages businesses, especially in the informal and SME sectors, to start now formalise operations in order to align with the new digital environment and its demands,” he said.

Chisanga further argued that beyond revenue collection, the system strengthened fiscal transparency and enhanced the credibility of Zambia’s tax regime.

“It is particularly significant for a country undergoing economic restructuring, as it offers a strong pathway to sustainable domestic revenue generation without overburdening compliant taxpayers,” Chisanga said.

He called for aggressive taxpayer education, digital infrastructure expansion and responsive technical support to ensure full adoption.

He advised that resistance, especially among informal traders and rural SMEs, must be addressed with incentives, continuous training support and inclusive policy measures.

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