GOVT ADVISED TO STRENGTHEN DOMESTIC REVENUE MOBILIZATION USING ARTIFICIAL INTELLIGENCE SYSTEMS

 The Economics Association of Zambia-EAZ has advised government to strengthen domestic revenue mobilization through tax reforms, capacity building and improved tax collection efficiency using artificial intelligence systems to raise revenue between 25 and 30 percent of the Gross Domestic Product-GDP.

Association President Dr. Oswald Mungule has also recommended that government implements targeted fiscal stimulus measures to support sectors affected by the drought such as agriculture and energy.

According to Dr. Mungule, the exchange rate management policy should be refocused to respond by bringing down the domestic general price level while strengthening the integration of artificial intelligence systems at the Zambia Revenue Authority-ZRA and the Bank of Zambia to effectively monitor export revenues.

In his comprehensive statement on the national state of affairs, the EAZ President has called for a sustained prudent debt management and favorable terms for debt restructuring to maintain debt sustainability through the use of green finance instruments.

He further advises the Ministry of Finance and National Planning, to expand social safety nets to protect the most vulnerable populations from the impact of inflation by introducing tax allowances to families.

This position by the association emanates from various economic challenges including that Zambia’s GDP growth prospect for 2024 was downgraded from 4.8% to 2.7 %, inflation at 14.7 %, a public sector debt excluding arrears of over $25 billion, dwindling mining and agricultural production and an exchange rate averaging K25.54 to a dollar, among other indicators.

PHOENIX NEWS