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Revenue Authority banks on VAT, PAYE, three other taxes to generate K125.3 billion in 2024


The Zambia Revenue Authority (ZRA) has announced that it will intensify a lot of enforcement activities around Pay As You Earn (PAYE) and others tax type in 2024.

Government in the 2024 national budget announced that the threshold for PAYE had been moved to K5,100 from the current K4,800.

ZRA Commissioner General, Dingani Banda,at the at the National Symposium on the 2024 budget in Lusaka on Monday stated that the authority was in 2024 expected to collect K125.3 billion, growth of 21.5 percent from the 2023 target.

Banda banked on five tax types to assist in raising the required revenue.

He named the top five contributors by value to revenue in 2024 as VAT, company tax, PAYE, withholding tax and mineral royalty.

“We expect PAYE to contribute more, we will intensify a lot of enforcement activities around PAYE and others.”

Read more: ZRA says 105 tax collectors fail to remit about K2 billion, as only seven of 2,400 mines are tax compliant

Banda also announced that ZRA was set to implement an Electronic Invoicing System (EIS) meant to seal leakages in Value Added Tax (VAT) by end of this month.

Implementation of the EIS is expected to ease detection of VAT fraud between business to business.

A total of 254 companies were under suspected VAT frauds as at September 2023.

Banda is expectant that implementation of the EIS would seal revenue leakages in VAT and other transactional tax types, and that income tax deductions would be based on transactions recorded on initiative.

“For VAT, this is the main issue that we need to ensure that we close the revenue leakages that are in VAT and the major reform that will be running with from end of this month up to I do not know when is the EIS.

“This is the key reform that we are looking at to drive the performance of VAT, but also including company tax. We do not expect expenses to be accepted as deductable for income tax purpose if you are not coming from computerised system as we go forward,” he said.

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